Hyzon Motors announces latest move to raise capital

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Updated Jul 26, 2024
Hyzon Motors tractor parked in garage
Hyzon Motors confirms it is selling 22.5 million shares of common stock to needed raise capital after previously deciding to shutter its offices in the Netherlands and Australia.
Hyzon Motors

Hydrogen fuel cell technology supplier and vehicle manufacturer Hyzon Motors (HYZN) announced today its latest move to raise needed capital. The company has entered into a securities purchase agreement with investors for the purchase and sale of 22.5 million shares of its Class A stock and warrants to purchase 22.5 million shares of its common stock. This is a combined offering price of $0.20 per share.

The accompanying Warrants, which are immediately exercisable and have a five-year expiration date from the purchase date, have an exercise price of $0.30 per share.

The offering is expected to close on July 22, 2024. Net proceeds will mostly be used for funding working capital and "other general corporate purposes," according to the Hyzon's press release.

Roth Capital Partners is set to act as the offering's sole placement agent.

The offering's gross proceeds are estimated to be around $4.5 million, before fees and other offering-related expenses. 

Hyzon has been facing financial challenges and it's been making moves to correct this over the past few weeks.

The New York-based company first announced plans to realign its core business strategies in order to refocus efforts on its North American operations and the refuse industry. A potential company sale was also being considered at the time. 

A week later, Hyzon confirmed it is halting operations in the Netherlands and Australia.

"This was a complex and difficult decision," Hyzon CEO Parker Meeks said at the time. "Given the challenges of bringing new technology to market in an emerging industry, we believe we need to focus our efforts on the North American market and refuse industry as well as overseeing our large fleet trial programs, which commence this summer." 

Hyzon's U.S. offices are in Rochester, Chicago, and Detroit. It also has facilities in China and Germany. 

Earlier this year, Hyzon managed to avoid delisting from the Nasdaq stock exchange after its shares traded at less than $1 for over 30 consecutive business days. 

In 2023, the company posted a $184 million net loss and had a $34.23 million net loss for the first quarter of this year. As of March 31, Hyzon claimed it had $52.4 million in cash and cash equivalents on hand. 

Jay Traugott has covered the automotive and transportation sector for over a decade and now serves as Senior Editor for Clean Trucking. He holds a drifting license and has driven on some of the world's best race tracks, including the Nurburgring and Spa. He lives near Boulder, Colorado, and spends his free time snowboarding, climbing, and hiking. He can be reached at [email protected].

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Hydrogen Fuel Cell & BEV Survey
The following survey was sent as a link in an email cover message in February 2023 to the newsletter lists for Overdrive and CCJ. After approximately two weeks, a total of 176 owner-operators under their own authority, 113 owner-operators leased or assigned to a carrier and 82 fleet executives and 36 fleet employees from fleets with 10 or more power units had completed and submitted the questionnaire for a total of 407 qualified responses. Cross-tabulations based on respondent type are provided for each question when applicable.
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