H2X Global said the agreement will enable immediate growth for the Victoria-headquartered company as it will fuel the delivery of its almost $40 million in firm vehicle orders and provide a significant boost towards its planned listing on the London Stock Exchange.
Under the funding agreement, Verde will make an initial $5.2 million investment. The term sheet also includes an option for H2X to accept up to the full $87.14 million in funding, over the 2023 to 2024 period, subject to operational milestones.
H2X Global Chief Executive Officer Brendan Norman said the agreement with Verde will allow H2X to start delivering its hydrogen-powered vehicles to markets in Asia, India, Europe and Australia at a “competitive cost and on a commercial scale.”
“With Verde Mobility’s strategic investment, H2X is all set to significantly expand its operations and lead the shift to hydrogen vehicles, securing a pole position in the rapidly evolving clean mobility landscape,” he said.
Norman said the collaboration with Verde opens the doors to numerous major manufacturing and distribution facilities across the wider European region.
“Through this, we are providing a solution to cost and performance challenges associated with carbon-free transport, which is a proposition that will transform the automotive industry,” he said.
H2X’s key focus will now be to unlock its global book of purchase intent agreements, which covers 800 vehicles, including its Warrego ute, a rebadged Ford Ranger powered by H2X’s hydrogen vehicle power train and fuel cell technology.
The funding will also enable the company to step up its plans for commercial production of a hydrogen fuel cell-powered van known as the Darling, which will be the company’s first fully designed and developed vehicle.
“The Verde agreement paves the way for us to fast-track the launch of our fully developed Darling van,” Norman said. “We anticipate this will crank up our vehicle production to 25,000 units a year and provide a sturdy financial foundation for the company.”
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