Hydrogen Tech Developer Loop Energy Files Notice Of Intention Under Bankruptcy And Insolvency Act
It appears that there isn’t all that much interest in hydrogen fuel cell technology. Loop Energy (TSX: LPEN), a developer and manufacturer of hydrogen fuel cell solutions, this morning indicated it has filed a notice of intention to make a proposal under the Bankruptcy and Insolvency Act of Canada.
The filing follows an 18 month strategic review process that aimed to find strategic alternatives for the company. In making the decision for a filing, the company is said to have reviewed its cash position, financing options, upcoming scheduled payments and other operating expenses before determining to proceed with the bankruptcy filing.
Loop Energy has indicated it intents to conduct a sale, investment, and solicitation process in an effort to sell off its assets or find a party willing to invest in the operation. The process is expected to be concluded by the end of August 2024.
In terms of recent bankruptcies, the filing by Loop is somewhat odd, given that they continue to have cash on hand. As of the end of Q1 2024, the company reported assets of $18.0 million, including cash of $2.3 million. Total liabilities sit at $16.7 million, which includes payables of $2.6 million and total current liabilities of $6.2 million.
The company in the most recent quarter however reported revenues of $120,000, while cost of goods sold amounted to $346,000, which was partially the result of inventory write-downs. The quarter concluded with a net loss of $4.5 million, largely driven by impairments of $3.6 million.
Loop Energy last traded at $0.04 on the TSX.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.