- Axion (AXV) to acquire 50 per cent ownership in H2CI KuniUmi Asia, Inc., a hydrogen technology company and initiates name change
- It is acquiring the stake from KUAM (Hong Kong) Investment 02 Ltd.
- Hydrogen Investee Co expects to generate over 18,000 kg of hydrogen and oxygen in aggregate on a daily basis from its Phase 1 commercial production starting in early 2022
- The global hydrogen market is over 70 billion kg annually, but green hydrogen with zero carbon emissions
- The agreement has been approved by the independent directors of Axion, and it will not participate in management of Hydrogen Investee Co.
- Axion Ventures Inc. (AXV) is trading at C$0.20 at 11:28 am ET
Axion Ventures Inc. (AXV) has entered into a definitive agreement to acquire a 50 per cent partnership stake in H2CI KuniUmi Asia, Inc.
Hydrogen Investee Co retains the exclusive commercialization rights of a proven and patented Canadian technology that refines green hydrogen economically and at scale, with commercial extraction operations commencing in the first quarter of 2022 in Quebec, Canada.
It is acquiring the stake from KUAM (Hong Kong) Investment 02 Ltd. on a favourable basis for consideration of US$1 and a trailing earnout of US$1 per kg of each hydrogen and oxygen extracted and sold by Hydrogen Investee Co for a period of 2 years from the completion date expected in October 2021.
Hydrogen Investee Co expects to generate over 18,000 kg of hydrogen and oxygen in aggregate on a daily basis from its Phase 1 commercial production starting in early 2022, and thereafter expanding to Phase 2 during 2022 with the daily yield increasing to over 100,000 kg.
It plans to make further announcements regarding the roadmap of Hydrogen Investee Co in the near future, as it has been assisting strategically to accelerate the development of the business in all aspects and is thus far pleased with the progress and exceptional outlook.
The global hydrogen market is over 70 billion kg annually, but green hydrogen with zero carbon emissions from start to finish has been the elusive solution due to economic challenges until now. The industrially scaled supply of green hydrogen shall trigger a seismic shift for decarbonizing global energy requirements.
The board of the company has also approved a name change, consistent with its commitment to the ESG technology opportunity as an Investment Issuer whilst continuing to develop its core legacy holdings of video game assets which are now operating profitably.
The completion of the agreement will constitute a “related party transaction” as such term is defined by Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions, given that Yasuyo Yamazaki, the Executive Chairman of Axion, is the President and indirect controlling shareholder of KUAM02.
Axion is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and (b) and 5.7(1)(a) of MI 61-101, given that the company’s common shares are not listed on specified markets.
The initial consideration is for US$1 and therefore does not exceed 25 per cent of the market capitalization of the company, as determined in accordance with MI 61-101.
Axion Ventures Inc. (AXV) is trading at C$0.20 at 11:28 am ET.