Having issued damages claimed against the investor and its director Norbert Bindner, Fusion Fuel says Hydrogenial had committed to buying 43.8 million shares with warrants to purchase 13 million more.
But the original closing date of September 30 passed and no funding had been made.
Despite Hydrogenial requesting an extension, which was granted until October 25, Fusion Fuel says it continued to receive no payments.
Fusion Fuel claims as a consequence, it had to file for insolvency of its Portuguese subsidiary, Fusion Fuel Portugal S.A. – which it said is responsible for the “most significant portion” of its technology sales and project development activities.
“On the advice of insolvency counsel, the company has submitted a claim in Portugal for damages incurred due to Hydrogenial’s breach,” Fusion Fuel said in a statement.
The major blow comes after the firm’s 630MW Sines green hydrogen project was named as an Important Project of Common European Interest (IPCEI), which set the path for state funding.
“In response to these events, Fusion Fuel is actively exploring strategic alternatives to preserve shareholder value, including a potential transaction that management believes could complement the company’s hydrogen business and yield significant synergies,” the firm said.
H2 View understands the company is likely to provide a further update soon.
In addition to the insolvency, Fusion Fuel in August announced it was facing delisting from the Nasdaq stock exchange after its share price fell below $1 for over 30 consecutive business days.
Nasdaq had granted the firm until January 29, 2025, to regain compliance.
In May, the firm received a warning from Nasdaq that it had fallen out of compliance with the minimum $10m stockholders’ equity requirement for continued listing.
Despite planning to transfer its listing to Nasdaq Capital Market on November 4, it failed and launched an appeal to postpone its delisting.
