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Hyzon to halt operations in the Netherlands and Australia
Hyzon, a U.S.-based manufacturer and global supplier of high-performance hydrogen fuel cell systems, has announced a strategic shift to concentrate its operations in North America and the refuse industry. This decision follows a thorough assessment of challenging market conditions in Europe and Australia, leading to the halting of operations in the Netherlands and Australia.
Key Highlights:
- Hyzon to halt operations in the Netherlands and Australia
- Focus on North American market and refuse industry
- $17 million expected in charges related to exit activities
- Potential non-cash gains from derecognition of certain liabilities
- Ongoing efforts to secure capital and explore strategic alternatives
Hyzon Chief Executive Officer Parker Meeks expressed gratitude to the European and Australian teams for their dedication and acknowledged the complexity of the decision. “This was a complex and difficult decision. 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,” added Meeks.
In connection with the planned exit activities, Hyzon expects to incur charges of approximately $17 million, with around $7 million in cash. These charges include non-cash inventory write-downs, employee-related costs, other exit-related expenses, and non-cash impairment charges. The costs are anticipated to be recognized in the second and third quarters of 2024, with related cash payments in the third and fourth quarters of 2024. Additionally, the company may realize non-cash gains from the derecognition of certain liabilities.
Nasdaq Capital Market Application
On January 23, 2024, Hyzon received a notice from Nasdaq about non-compliance with the minimum bid price requirement. The company has until July 22, 2024, to regain compliance by maintaining a minimum bid price of $1.00 per share for ten consecutive business days. If unsuccessful, Hyzon has applied to transfer its listing to the Nasdaq Capital Market, potentially extending the compliance period by another 180 days.
Strategic Capital Efforts and Liquidity Management
Hyzon continues to pursue capital through various strategic alternatives, including selling parts of the company, cost reductions, workforce reductions, and other significant corporate transactions. The company is also considering bankruptcy protection if its financing efforts are unsuccessful.
Despite halting operations in the Netherlands and Australia, Hyzon remains committed to advancing its zero-emission single stack 200kW hydrogen fuel cell technology for the North American Class 8 and refuse truck platforms. These platforms will feature in large-fleet trial programs throughout the United States and Canada starting this summer. The company is also optimizing operations in China.
About Hyzon
Hyzon is a global supplier of high-performance hydrogen fuel cell technology aimed at providing zero-emission power to decarbonize demanding industries. The company focuses on heavy-duty applications, deploying its technology across North America, Europe, and Australia/New Zealand. For more information, visit www.hyzonfuelcell.com.
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