HydroGen LLC (Jefferson Hills, PA), a developer of fuel cell systems utilizing air-cooled, phosphoric-acid fuel cell (PAFC) technology, announced that it has completed its exchange transaction with Chiste Corp. and raised $13.5 million of gross proceeds through the sale of equity securities. HydroGen is now a wholly owned subsidiary of Chiste, and the historical business operations of HydroGen will comprise Chiste's principal business operations going forward.
HydroGen's air-cooled 400 kW PAFC technology was originally developed by Westinghouse Electric Corp., in collaboration with the United States Department of Energy. HydroGen intends to compete in the industrial co-generation and distributed generation markets by offering fuel cell systems in the 6 MW to 30 MW range based on a standardized 2 MW power plant.
Immediately preceding the closing of the exchange transaction, HydroGen completed a private placement of LLC membership units to accredited investors for gross proceeds of approximately $6.5 million. In addition, holders of $2,000,000 of HydroGen's notes converted into LLC membership units as part of the private placement. Immediately following the closing of the exchange transaction, Chiste completed a private placement of securities to an institutional investor group for gross proceeds of $7 million. Proceeds from these financings will be used to execute HydroGen's business plan. Immediately following the closing of the exchange and financing transactions, HydroGen members collectively own approximately 95% of the outstanding shares of Chiste's common stock on an as-converted-to-common-stock basis. The existing Chiste stockholders will own approximately 5% of Chiste's common stock on a fully diluted, as-converted basis.
