Subscribe
Be the first with the news that moves the market- Investment company, Organic Flower Investments Group (SOW) has entered into a letter of intent about investing in the US hydrogen sector
- The company will acquire up to 13 per cent equity interest in a US-based company with hydrogen assets
- Organic Flower will pay for the acquisition through a consideration of C$4.5 million in cash
- Under the acquisition terms, the company has the option to increase its ownership of the assets to 90 per cent
- Organic Flower Investments Group (SOW) is up 13.04 per cent and is currently trading at 26 cents per share
Investment company, Organic Flower Investments Group (SOW) has entered into a letter of intent about investing in the US hydrogen sector.
The LOI refers to an acquisition, in which Organic Flower will obtain up to 13 per cent equity interest in a US-based company. The company in question owns hydrogen assets, with potential applications on a global scale.
Organic Flower intends to acquire the equity interest in the company for a purchase price of C$4.5 million in cash.
Under the terms of the arms-length acquisition, the company has the option to increase its ownership of the hydrogen company’s assets to 90 per cent. This would primarily cover small-footprint, environmentally friendly intellectual property for the modularised and lowest tier production cost of hydrogen.
Completion of the investment which is outlined by the letter of intent is subject to a number of conditions. These include successful completion of due diligence, receipt of necessary regulatory approvals, and negotiation of a definitive agreement.
The definitive documentation will cover warranties, representations, covenants, and other terms and conditions which are customary for such transactions.
This partial acquisition is indicative of Organic Flower’s policy, which acknowledges the renewable energy sector’s investment potential. The company is continuing to identify and evaluate investment and operational opportunities across all sectors.
Organic Flower currently has nine investments across a variety of industries and sectors. During the past fiscal year, the company has successfully held C$120 million in investments, and returned capital to its holders through distribution of its AgraFlora interest.
Organic Flower Investments Group (SOW) was up 13.04 per cent and is trading at 26 cents per share at end of last week.
