Clean Power (MOVE) has increased its investment in PowerTap Hydrogen Fueling Corp. by acquiring an additional 4.5 percent equity interest in PowerTap.
As previously announced, the company initially invested in PowerTap on October 27, 2020 by acquiring a 90 per cent equity interest. With the latest investment, Clean Power has increased its equity interest in PowerTap to 94.5 per cent.
PowerTap is leading the charge to build out cost-effective hydrogen fueling infrastructure through its environmentally friendly intellectual property, product design for the modularized and lowest tier production cost of hydrogen and launch plan.
PowerTap technology-based hydrogen fueling stations are already located in private enterprises and public stations in California, Texas, Massachusetts, and Maryland.
Since Clean Power's intial investment, PowerTap has been developing its hydrogen fueling station network in stages, consisting of engineering and design, ongoing development of PowerTap 3.0 and permitting and site preparation, as updated in past news releases.
Most recently, PowerTap signed a definitive agreement with Humboldt Petroleum, Inc., Peninsula Petroleum, LLC, and Colvin Oil I LLC, collectively referred to as “the Andretti Group” to locate PowerTap’s hydrogen station technology at select Andretti Group properties.
Under the terms of definitive agreement, the Andretti Group will further help market PowerTap’s technology to third-party chain retailers, major oil companies and independent stations through the Andrettis’ deep network of automotive industry connections.
Clean Power's investments in PowerTap aligns well with the energy industry focusing on transitioning more into hydrogen-based energy as demonstrated by US President Biden's most recent executive orders to drive the US to a clean energy future by achieving a carbon pollution-free power sector by 2035 and putting the country on an irreversible path to a net-zero economy by 2050.
After the initial investment to acquire 90 per cent of PowerTap, the company completed this follow-on investment to increase Clean Power's investment in PowerTap to 94.5 per cent.
The consideration paid to the vendors for the additional 4.5 per cent of PowerTap consisted of an aggregate of 18,000,000 common shares in the capital of the company at a deemed value of $2.72 per consideration share. The vendors are arm’s-length to one another and none of whom, individually holds 10 per cent or more of the issued and outstanding shares of the company on a non-diluted basis.
Clean Power is down 3.83 per cent to C$2.51 per share.