Loop Energy and H2 Portable Announce C$15M Financing to Support Proposed Amalgamation

Loop Energy Inc., in collaboration with H2 Portable Power Corp., has initiated a brokered private placement offering aiming to raise approximately C$15 million through the sale of subscription receipts. This financial move is in preparation for a proposed three-cornered amalgamation between the two companies. The offering, brokered by ATB Securities Inc., plans to distribute up to 8,575,000 subscription receipts at C$1.75 each.

The completion of this offering is aligned with a previously disclosed amalgamation agreement and is critical for the proposed transaction's success. This strategic financial initiative is to support the backdoor listing of H2P under the Toronto Stock Exchange policies. Subscription receipts will convert into units of H2P upon meeting specific conditions, further integrating H2P into Loop’s financial and operational framework.

Moreover, the announcement presents a revised timeline for the satisfaction of the escrow release conditions, correcting the previous announcement from "36 months" to "24 months." This adjustment is crucial for the stakeholders and investors, ensuring clarity on the terms of the offering and the conditions under which the subscription receipts will convert.

The funds raised will bolster ongoing operations and support the development of technologies and products for the combined entity post-amalgamation. This strategic financial effort underlines both companies' commitment towards advancing hydrogen fuel technologies and supporting environmentally sustainable power solutions.