Hydrogenics Corp. announced that it will sell common shares and warrants in a registered direct offering with two institutional investors, resulting in gross proceeds of US$5,000,000 before placement agent’s fees and other offering expenses.
Under the terms of the transaction, Hydrogenics will sell 12,500,000 common shares for US$0.40 per share. Investors will also receive warrants for the purchase of one common share for each common share purchased; 5,983,886 of these warrants will be exercisable at any time on or after the date of issuance until January 14, 2015 at an exercise price of US$0.52 per common share. The remaining 6,516,114 warrants will be exercisable for a period of five years beginning six months and one day after issuance, at an exercise price of US$0.52 per common share. Each of the warrants contains "full-ratchet" anti-dilution protection as to the exercise price but not the number of shares issuable thereunder.
"As Hydrogenics prepares for what we anticipate will be an active 2010, we felt it prudent to bolster the company’s financial position as we implement our growth plans to capture a number of compelling market opportunities this year," said Daryl Wilson, Hydrogenics President and CEO. "We are grateful to the institutional investors for their support and interest in our business and in the expanding hydrogen economy unfolding around the globe."
The closing of the offering will take place on January 14, 2010.
