Hydrogenics Announces New Debt Facility
05 November 2016 - 9:00AM
Hydrogenics Corporation (NASDAQ:HYGS) (TSX:HYG)
(the “Company” or “Hydrogenics”), a leading developer and
manufacturer of hydrogen generation and hydrogen-based power
modules, today announced that it has entered into a credit
agreement with Export Development Canada (“EDC”) for a five year,
US$9 million term loan.
“We are very pleased to announce this new,
long-term credit facility,” said Daryl Wilson, President & CEO
of Hydrogenics. “The facility allows us to invest in our
business, providing funds for equipment to improve our
manufacturing throughput as well as fund working capital during our
expected expansion going forward. We appreciate the support given
by EDC to Hydrogenics and our leading hydrogen-based
applications.”
“Supporting clean technologies like those
developed and manufactured by Hydrogenics is one of EDC’s key
priorities,” said Dan Mancuso, Vice-President, International
Financing, Small & Mid-Market at EDC. “Hydrogenics is a world
leader in hydrogen technology, and we’re pleased to provide
financing that will support their continued international
growth.”
Funding under the loan is expected to be
advanced on November 7, 2016. As consideration for providing
the loan, EDC was granted 200,575 share purchase warrants.
Each warrant is exercisable for one common share of
Hydrogenics at an exercise price of US$6.85 per common share. The
warrants are transferrable and expire on November 4, 2021.
This press release does not constitute an offer
to sell or a solicitation of an offer to buy the securities
described herein, nor shall there be any sale of these securities
in any jurisdiction in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
The securities will not be and have not
been registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold into the United States
absent registration or an exemption from registration.
The securities have not been and will not be qualified for
sale by way of a prospectus under Canadian securities
laws.
About Hydrogenics Hydrogenics
Corporation (www.hydrogenics.com) is a world leader in engineering
and building the technologies required to enable the acceleration
of a global power shift. Headquartered in Mississauga, Ontario,
Hydrogenics provides hydrogen generation, energy storage and
hydrogen power modules to its customers and partners around the
world. Hydrogenics has manufacturing sites in Germany, Belgium and
Canada and service centers in Russia, Europe, the US and
Canada.
Forward-looking Statements This
release contains forward-looking statements within the meaning of
the “safe harbor” provisions of the U.S. Private Securities
Litigation Reform Act of 1995, and under applicable Canadian
securities law. These statements are based on management’s current
expectations and actual results may differ from these
forward-looking statements due to numerous factors, including: our
inability to increase our revenues or raise additional funding to
continue operations, execute our business plan, or to grow our
business; inability to address a slow return to economic growth,
and its impact on our business, results of operations and
consolidated financial condition; our limited operating history;
inability to implement our business strategy; fluctuations in our
quarterly results; failure to maintain our customer base that
generates the majority of our revenues; currency fluctuations;
failure to maintain sufficient insurance coverage; changes in value
of our goodwill; failure of a significant market to develop for our
products; failure of hydrogen being readily available on a
cost-effective basis; changes in government policies and
regulations; lack of new government policies and regulations for
the energy storage technologies; failure of uniform codes and
standards for hydrogen fueled vehicles and related
infrastructure to develop; liability for environmental damages
resulting from our research, development or manufacturing
operations; failure to compete with other developers and
manufacturers of products in our industry; failure to compete with
developers and manufacturers of traditional and alternative
technologies; failure to develop partnerships with original
equipment manufacturers, governments, systems integrators and other
third parties; inability to obtain sufficient materials and
components for our products from suppliers; failure to manage
expansion of our operations; failure to manage foreign sales and
operations; failure to recruit, train and retain key management
personnel; inability to integrate acquisitions; failure to develop
adequate manufacturing processes and capabilities; failure to
complete the development of commercially viable products; failure
to produce cost-competitive products; failure or delay in field
testing of our products; failure to produce products free of
defects or errors; inability to adapt to technological advances or
new codes and standards; failure to protect our intellectual
property; our involvement in intellectual property litigation;
exposure to product liability claims; failure to meet rules
regarding passive foreign investment companies; actions of our
significant and principal shareholders; dilution as a result of
significant issuances of our common shares and preferred shares;
inability of US investors to enforce US civil liability judgments
against us; volatility of our common share price; dilution as a
result of the exercise of options; and failure to meet continued
listing requirements of NASDAQ. Readers should not place undue
reliance on Hydrogenics’ forward-looking statements. Investors are
encouraged to review the section captioned “Risk Factors” in
Hydrogenics’ regulatory filings with the Canadian securities
regulatory authorities and the US Securities and Exchange
Commission for a more complete discussion of factors that could
affect Hydrogenics’ future performance. Furthermore, the
forward-looking statements contained herein are made as of the date
of this release, and Hydrogenics undertakes no obligations to
revise or update any forward-looking statements in order to reflect
events or circumstances that may arise after the date of this
release, unless otherwise required by law. The forward-looking
statements contained in this release are expressly qualified by
this.
Investor Contacts:
Bob Motz, Chief Financial Officer
(905) 361-3660
investors@hydrogenics.com
Chris Witty
Hydrogenics Investor Relations
(646) 438-9385
cwitty@darrowir.com
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