When you read these lines in the newest H2-international issue, clarity will have been provided. Actually, all of the figures for 2022 and the first quarter 2023 should have been presented before May 15, then the responsible committee of Nasdaq agreed to an extension, and the figures for 2022 and the Q1 2023 have now been submitted. Without going into detail, this is how the new executive board has cleared up the situation. Per the end of May, the company still has available 185 million USD in liquid capital.
A good position paper
At the trade fair Advanced Clean Transportation (ACT) Expo held at the beginning of May in Anaheim, California, Hyzon presented a new in-house-developed fuel cell design for trucks and additionally published a position paper titled “Designing the Future of Fuel Cells.” This involves a single 200-kW FC system different from systems put together from two or more 90- to 150-kW FC units. This “single stack” is intended to combine a variety of advantages:
- 30 percent reduction in volume
- 30 percent weight reduction
- 25 percent cost reduction of the stack
- 20 percent increase in travel range
These could be competitive advantages not to be underestimated, the managing director of Anleg, Jan Andreas, shared with H2-international.
Hyzon’s aim is to emerge stronger from the balance sheet crisis triggered by the previous management board and to be able to concentrate on its business with hydrogen-powered trucks. The stock market price must sustainably stay above the 1 USD mark, though, as prices of under 1 USD create the danger of a delisting or a change of stock exchange location. This entails the possibility of executing a reverse split of the shares in order to thus, via consolidation of the outstanding shares, force the price to over 1 USD. This would be a bad idea, though. As only about 30 percent of the shares are even freely traded, good news would quickly create room for higher share prices, especially since 20 percent of these freely tradable shares have been sold short (nearing 20 million in number).
That the major controlling shareholder Horizon from Singapore will take Hyzon off of the stock exchange seems unlikely, as they can generate further important capital of their own via the stock market simply through the issuance of more shares. Otherwise, the effort to continue to be listed on Nasdaq would also be superfluous. The company is an exciting turnaround and growth story for hydrogen in commercial vehicles all the same, even if certainly highly speculative, which is attributable to its status as a startup. Short sellers are still dictating the picture with nearly 20 million shares, but that can soon change. The share price is well hedged via liquidity (stock market value: 140 million USD), but achieving prices of over 1 USD is very important. The company now appears to be well positioned and, after all the past quarrels, can once again devote itself fully to the subject of hydrogen in the commercial vehicle sector.
Hyzon is expanding the core team: With the new COO Dr. Bappa Banerjee comes his comprehensive knowhow from many years in top management at companies like Caterpillar.
Disclaimer
Each investor must always be aware of their own risk when investing in shares and should consider a sensible risk diversification. The FC companies and shares mentioned here are small and mid cap, i.e. they are not standard stocks and their volatility is also much higher. This report is not meant to be viewed as purchase recommendations, and the author holds no liability for your actions. All information is based on publicly available sources and, as far as assessment is concerned, represents exclusively the personal opinion of the author, who focuses on medium- and long-term valuation and not on short-term profit. The author may be in possession of the shares presented here.
Written by Author Sven Jösting, June 9th, 2023
