Hydrogen Utopia International PLC (LSE: HUI, OTCQB: HUIPF) has disclosed that Helmond Holding Group Corp (HHG) is the other party involved in its anticipated reverse takeover.
HHG is recognized as “a significant and profitable international bio-energy company,” according to HUI’s recent statement.
HUI believes that merging its innovative waste plastic to hydrogen technology with HHG’s established biofuels production will position the newly combined entity as a leading force in both the biofuels and hydrogen markets.
Yesterday, HUI announced a reverse takeover agreement that promises to significantly transform the company. It shared with its investors that it had agreed in principle to potentially acquire a major and profitable international bio-energy company through a reverse takeover.
HHG, initially unnamed in yesterday’s reverse takeover announcement, operates in the biofuels production and related business, boasting revenues exceeding €365 million.
The transaction is estimated to be worth around £500 million, as per HUI’s announcement yesterday. This valuation is subject to due diligence and an independent assessment, and the payment will be entirely in shares.
The new HUI shares issued for this deal are expected to be priced at 9p each. Current HUI shareholders are set to receive a 3p per share cash distribution for each share they own. Additionally, they may receive future payouts based on project milestones, with a potential bonus of 2 additional shares for every 1 share owned if HUI’s technology becomes operational within three years post-merger.
The deal also includes HHG providing land in Europe, already equipped with most necessary permits and authorizations, for establishing HUI’s waste plastic to hydrogen facility. This arrangement includes land allocation and funding for HUI to demonstrate its technology at a commercial scale.
Moreover, Helmond operates several active plants in various locations, offering HUI an opportunity to expand its international project portfolio.
HUI has described this partnership as a strategic alignment with its goals.
Aleksandra Binkowska, HUI’s CEO, expressed her enthusiasm in a statement: “After three years of exploring numerous possibilities for establishing a waste plastic to hydrogen facility, I am thrilled to announce a successful outcome. Joining forces with an international bio-fuels leader aligns perfectly with HUI’s mission. These preliminary terms set us on a path to construct the world’s first plastic waste to hydrogen facility, fulfilling our commitment to our shareholders.”
