Company to Continue Pursuit of New Capital and
Adoption of Market-Leading Fuel Cell Technology in North
America
BOLINGBROOK, Ill., July 8, 2024
/PRNewswire/ -- Hyzon (NASDAQ: HYZN) (Hyzon or the Company), a
U.S.-based manufacturer and global supplier of high-performance
hydrogen fuel cell systems focused on providing zero-emission power
to decarbonize the most demanding industries, today announced that
after considering its options as well as completing its assessment
of the challenging market conditions across Europe and Australia, the Company will halt its
operations in the Netherlands and
Australia.
In comparison to North American efforts to accelerate the
hydrogen transition and adoption of zero-emission, fuel cell
technology, Hyzon said the government support for fuel cell-powered
transportation in Europe and
Australia has waned, including the
disbandment in many European countries of hydrogen subsidies. Hyzon
currently intends to maintain the potential to return to the
European and Australian markets as a fuel cell system supplier to
Original Equipment Manufacturers (OEMs).
"I would like to express my utmost gratitude to our dedicated
European and Australian teams who have tirelessly worked toward
advancing the hydrogen transition," said Hyzon Chief Executive
Officer Parker Meeks. "This was a
complex and difficult decision. Given the challenges of bringing
new technology to market in an emerging industry, we believe we
need to focus our efforts on the North American market and refuse
industry as well as overseeing our large fleet trial programs,
which commence this summer," added Meeks.
In connection with the planned exit activities, the Company
expects to incur charges of approximately $17 million, of which approximately $7 million is expected to be in cash.
Components of the charges include non-cash inventory write-downs of
approximately $7 million,
employee-related costs of approximately $3
million, other exit related costs of approximately
$4 million and non-cash impairment
charges of approximately $3 million.
The Company expects to incur these costs in the second and third
quarters of 2024 and make the related cash payments in the third
and fourth quarters of 2024. Further, the Company anticipates
derecognition of certain liabilities, which may result in non-cash
gains in the third and fourth quarters of 2024. The Company is
presently unable to estimate these non-cash gains.
Nasdaq Capital Market Application
On
January 23, 2024, the Company
received a letter (the "Notice") from the listing qualifications
staff of The Nasdaq Stock Market LLC ("Nasdaq") notifying the
Company that it was not in compliance with the minimum bid price
requirement set forth in Nasdaq Listing Rules 5550(a)(2) (the "Bid
Price Rule") for continued listing. The Bid Price Rule requires
listed securities to maintain a minimum bid price of $1.00 per share, and Nasdaq Listing Rule
5810(c)(3)(A) (the "Compliance Period Rule") provides that a
failure to meet the minimum bid price requirement exists if the
deficiency continues for a period of thirty consecutive business
days. The Notice had no immediate effect on the listing of the
Company's common stock, par value $0.0001 per share (the "Common Stock"), which has
traded on The Nasdaq Global Select Market under the symbol
"HYZN." In accordance with the Compliance Period Rule, the
Company has 180 calendar days to regain compliance. If, at any time
before the end of this 180-day period, or through July 22, 2024, the closing bid price of the
Common Stock closes at or above $1.00
per share for a minimum of 10 consecutive business days, subject to
the Staff's discretion to extend this period pursuant to Nasdaq
Listing Rule 5810(c)(3)(H), the Staff will provide written
notification that the Company has achieved compliance with the Bid
Price Rule. The Company has not yet achieved compliance with the
Bid Price Rule. Pursuant to Nasdaq Marketplace Rule 4450(i), on
July 5, 2024, the Company applied to transfer the listing of its
Common Stock from The Nasdaq Global Select Market to The Nasdaq
Capital Market. Provided that it satisfies all of the criteria for
such transfer, upon listing on The Nasdaq Capital Market, the
Company will be afforded an additional 180 calendar days to comply
with the Bid Price Rule and regain compliance if it meets certain
criteria and notifies Nasdaq of its intent to cure the
deficiency.
Strategic Capital Efforts and Liquidity Management
The
Company continues to pursue its previously disclosed efforts to
secure capital via the capital markets and explore various other
strategic alternatives. These alternatives include a sale of all or
a portion of the Company, a potential divestiture of its
Europe and / or Australia/New
Zealand businesses and subsidiaries, additional cost
reductions, liquidity management, a reduction in workforce and
other significant corporate transactions. The Company is also
evaluating the need to pursue bankruptcy protection or other
in-court relief if its financing efforts or other strategic
alternatives are not successful.
In closing, despite its decision to halt the Netherlands and Australian operations, the
Company reaffirms its commitment -- subject to its success with
respect to capital raising and various other strategic alternatives
-- to better position its first-to-market, zero-emission
single stack 200kW hydrogen fuel cell technology for the North
American Class 8 and refuse truck FCEV platforms. These platforms
will both be featured in significant large-fleet trial programs
throughout the United States and
Canada starting this summer.
Additionally, the Company continues to optimize its operations in
China.
About Hyzon
Hyzon is a global supplier
of high-performance hydrogen fuel cell technology focused on
providing zero-emission power to decarbonize demanding industries.
With agile, high-power technology designed for heavy-duty
applications, Hyzon is at the center of a new industrial revolution
fueled by hydrogen, an abundant and clean energy source. Hyzon
focuses on deploying its fuel cell technology in heavy-duty
commercial vehicles across North
America, Europe, and
Australia/New Zealand today and in tomorrow's power
generation and energy storage, mining, construction, rail, marine,
and airport ecosystems. To learn more about how Hyzon partners
across the hydrogen value chain to accelerate the clean energy
transition, visit www.hyzonfuelcell.com.
Forward-Looking Statements
This press release includes
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements include,
but are not limited to, express or implied forward-looking
statements relating to Hyzon's ability to pursue and enter into a
strategic transaction, raise additional capital, and achieve the
goals and benefits of its cost cutting and liquidity management
initiatives, and the impact if such actions are not achieved. You
are cautioned that such statements are not guarantees of future
performance and that the Company's actual results may differ
materially from those set forth in the forward-looking statements.
All of these forward-looking statements are subject to risks and
uncertainties that may change at any time. Factors that could cause
the Company's actual expectations to differ materially from these
forward-looking statements include the Company's ability improve
its capital structure; Hyzon's liquidity needs to operate its
business and execute its strategy, and related use of cash; its
ability to raise capital through equity issuances, asset sales or
the incurrence of debt; the possibility that Hyzon may need to seek
bankruptcy protection; Hyzon's ability to fully execute actions and
steps that would be probable of mitigating the existence of
substantial doubt regarding its ability to continue as a going
concern; our ability to enter into any desired strategic
alternative on a timely basis, on acceptable terms; our ability to
maintain the listing of our common stock on the Nasdaq Global
Select Market; our ability to retain or recruit, or changes
required in, our officers, key employees, or directors; retail and
credit market conditions; higher cost of capital and borrowing
costs; impairments; changes in general economic conditions; and the
other factors under the heading "Risk Factors" set forth in the
Company's Annual Report on Form 10-K, as supplemented by the
Company's quarterly reports on Form 10-Q and current reports on
Form 8-K. Such filings are available on our website or at
www.sec.gov. You should not place undue reliance on these
forward-looking statements, which are made only as of the date
hereof. The Company undertakes no obligation to publicly update or
revise forward-looking statements to reflect subsequent
developments, events, or circumstances, except as may be required
under applicable securities laws.
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SOURCE Hyzon