PowerTap Considers Spinning Out Hydrogen Subsidiary Via SPAC

PowerTap Hydrogen Capital (NEO: MOVE) this morning indicated that it has begun the process of undergoing a strategic review. Primarily, it appears the review pertains to whether or not the firm will elect to take one of its subsidiaries, PowerTap Hydrogen Fueling Corp, public via a special purpose acquisition corporation transaction.

As with all strategic reviews, the company has indicated that it will be reviewing a range of options for the firm to move forward. Such options include international joint ventures, strategic investments, and mergers, in addition to the SPAC method mentioned.

Commenting on the potential for the subsidiary to broken off from the company and taken public via a SPAC, CEO Kilambi commented, “In light of various inquiries we have received from potential strategic partners globally and several USA listed SPACs over the past few months, we decided it was prudent to retain financial advisors and conduct a formal process to maximize shareholder value.”

Such a transaction would see the firms onsite hydrogen production tech put into a separate listed vehicle, with the vehicle to focus on clean energy and hydrogen, while likely becoming significantly capitalized.

Further information is set to be released only if the board elects to go this route.

PowerTap Hydrogen Capital last traded at $0.57 on the Neo Exchange.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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