Pineapple Power Corporation PLC, a UK-based special purpose acquisition company (SPAC), has revealed its intention to acquire Ilios Hydrogen Canada Limited, a prominent green hydrogen plant developer located in Canada. The proposed transaction is valued at £33 million (approximately USD 40.6 million or EUR 37.9 million) and is based on a non-binding agreement.
Ilios Hydrogen possesses an impressive project pipeline that includes five modular sites currently under development in Italy. These facilities are designed to initially produce 20 MW of carbon-neutral green hydrogen, with the flexibility to expand their capacity up to 100 MW per site. The company is also involved in various development activities in Canada and has identified potential locations for future international projects, including the UK.
Ilios Hydrogen's business strategy encompasses both the construction and operation of production plants, as well as the option to monetize developed facilities. In addition to production, the company may engage in green hydrogen marketing and distribution.
The completion of this all-stock transaction is subject to a series of conditions, including a thorough due diligence process and the finalization of a definitive agreement, among others. Following the successful conclusion of the deal, the newly combined entity intends to maintain its listing on the Main Market of the London Stock Exchange (LSE).
This announcement comes on the heels of Pineapple Power Corporation's decision to terminate a previously arranged non-binding business combination agreement at the end of October. The SPAC had originally pursued an acquisition of Element 2 Limited, a hydrogen refueling company with a network of five refueling locations across the UK. However, the transaction was abandoned due to a failure to secure the necessary capital and to reach an acceptable agreement on valuation and transaction structure.