GM and Hydrogenics Announce Strategic PartnershipOctober 24, 2001 by Jeff Shepard
General Motors Corp. (GM, Detroit, MI) and Hydrogenics Corp. (Mississauga, ON) announced a strategic alliance to accelerate the development of fuel cell technology into global commercial markets. The alliance will include shared intellectual property rights and joint efforts in fuel cell product development, engineering, prototyping, testing, branding and marketing strategies.
As part of the agreement, GM will receive 11.3 million shares of Hydrogenics common stock, or approximately 24 percent of Hydrogenics' outstanding shares. Hydrogenics will also issue GM warrants to acquire an additional 2.4 million Hydrogenics common shares, bringing GM's stake to 28 percent of outstanding equity. GM will also appoint a representative to Hydrogenics' board of directors in conjunction with the alliance, resulting in the expansion of Hydrogenics' board from seven directors to eight.
”GM and Hydrogenics share a joint vision to commercialize fuel cell technology and develop the energy and propulsion systems that will use this technology,” said Larry Burns, GM vice president of research and development, and planning. “Hydrogenics offers innovative applications for fuel cells, and we believe we have added a key player to our GM team, bringing us one step closer to fuel cell commercialization.”
Pierre Rivard, Hydrogenics president and CEO, added, “We are delighted to be partnering with the world's largest vehicle manufacturer and the world's leading developer of fuel cell technology. Our relationship with GM and the members of its world-class innovation and technology team will significantly enhance our ability to penetrate markets across the transportation, stationary and portable power spectrums. I am confident that our collective efforts will significantly accelerate the introduction of fuel cell vehicles and other products into commercial use."