Fusion Fuel Green Plc, an Ireland-based developer of clean hydrogen solutions, has filed for insolvency for its Portuguese subsidiary, Fusion Fuel Portugal SA, following the failure of a USD 33.5 million (EUR 31.6 million) funding deal with investor Hydrogenial SA.
The deal, which was signed in August, included Hydrogenial's commitment to acquire nearly 44 million shares of Fusion Fuel and warrants for additional shares. However, the transaction, initially set to close by September 30, failed to proceed despite meeting all closing conditions. A revised deadline of October 25 also passed without completion.
As a result of the deal's collapse, Fusion Fuel has initiated legal action against Hydrogenial and its principal, Norbert Bindner, for damages incurred from the breach of agreement.
The company has stated that it is actively exploring strategic alternatives to preserve shareholder value, including potential transactions that may complement its hydrogen business and create synergies.
Fusion Fuel's subsidiary, Fusion Fuel Portugal, handles a significant portion of the company's technology sales and project development. Despite these challenges, Fusion Fuel continues to focus on its patented miniaturized proton exchange membrane (PEM) electrolyser, the HEVO, and other hydrogen-related solutions.
The company, listed on Nasdaq, is facing potential delisting due to non-compliance with the exchange's minimum stockholder equity requirements. On Friday, Fusion Fuel's shares closed 25.95% lower at USD 0.375, with a market capitalization of about USD 6.51 million.
