HyGear is considered to be a leading innovator in the field of compact installations for the production and recycling of industrial gases like hydrogen. In total, the company strives to attract €5 million in funding by issuing 5000 bond certificates of €1000 each. The bonds mature in 6 years. Investors can subscribe to the bond offering starting June 18th 2019 and the subscription period closed as soon as the offering is fully subscribed. The associated warrants represent an option to purchase HyGear certificates of shares against a pre-determined price of €19.50 per share in the coming 2.5 years. During this period, the warrants are tradable as separate financial instruments on the NPEX platform. If HyGear’s share price increases above the strike price level of €19.50 in this period, the total yield on the investment can significantly increase above the 8% coupon.
The current offering is HyGear’s fourth financing round for growth. The company is known in the industry for its compact installation to produce and recycle industrial gases at the end-user’s site. It will use the proceeds of the bond loan to accelerate its Gas as a Service (GaaS) strategy further. In GaaS contracts, customers pay for the hydrogen produced instead of buying the installations. This model gained traction in recent years and the number of new contracts exceeds expectations, which leads to the new needs for additional capital.
On top of the growing demand for industrial hydrogen, HyGear observes a growing demand for hydrogen as a clean automotive fuel.
HyGear’s CEO, Marinus van Driel comments: “At this time, the pieces of the puzzle are coming together. We have been preparing ourselves for this growth in recent years and now we are experiencing increased interest in our products from all different market segments. We are at the cross road with the decision to pace our growth or to accelerate it. And we chose the latter, which translates into new funding requirements”
HyGear was founded in 2002. Founder and current CEO and shareholder Marinus van Driel saw hydrogen as an important alternative to fossil fuels. The obstacle to a breakthrough of hydrogen as fuel was that the gas was difficult to transport and that it was produced in relatively few places.
HyGear has found an answer to this with the compact gas installation. Gradually, however, it turned out that there was mainly industrial demand for these installations, for not only hydrogen but also other industrial gases such as nitrogen and oxygen.
NPEX is the platform for growth financing in the Netherlands, where enterprising investors can invest in ambitious companies.
NPEX is an investment firm with a license from the Netherlands Authority for the Financial Markets. NPEX is under continuous supervision by the AFM and DNB.
HyGear Media Contact
Asia +65 9169 4232
Europe +31 88 9494 302
NPEX Media Contact
Alan van Griethuysen
+ 31 6 5052 3004