MISSISSAUGA, ONTARIO, Oct. 27, 2009 (Marketwire) --
MISSISSAUGA, ONTARIO -- (Marketwire) -- 10/27/09 -- Hydrogenics Corporation (TSX: HYG)(NASDAQ: HYGS), a leading developer and manufacturer of hydrogen generation and fuel cell products, announced the closing of the previously announced non-dilutive financing transaction (the "Transaction") with Algonquin Power Income Fund (TSX: APF.UN) with gross cash proceeds of approximately C$10.8 million.
Daryl Wilson, Hydrogenics' President and CEO, stated, "we are very pleased to announce the closing of this complex transaction, which was clearly in the best interests of our company and our investors. We have bolstered Hydrogenics' balance sheet in a way that was non-dilutive to shareholders - leaving the company stronger positioned to pursue our many growth initiatives in 2010."
The Transaction involved a Plan of Arrangement and Exchange Offers pursuant to which, among other things, Hydrogenics acquired all of the issued and outstanding units and convertible debentures of Algonquin Power in exchange for new securities of Hydrogenics.
Pursuant to the Plan of Arrangement, Hydrogenics transferred substantially all of its assets and liabilities to a newly created subsidiary ("New Hydrogenics") and the existing class of common shares of Hydrogenics were redeemed for common shares in the capital of New Hydrogenics. New Hydrogenics has all of the same assets, liabilities, directors, management and employees as Hydrogenics had previous to the Transaction, except for certain tax attributes that remain behind, and Hydrogenics shareholders have become shareholders of New Hydrogenics. Pursuant to the Exchange Offers, unitholders of Algonquin Power exchanged their units for a new class of common shares of Hydrogenics ("New Common Shares"), and debentureholders of Algonquin Power exchanged their convertible debentures for convertible debentures or New Common Shares, resulting in, among other things, unitholders of Algonquin Power becoming shareholders of Hydrogenics and Algonquin Power becoming a subsidiary entity of Hydrogenics. Hydrogenics has been renamed "Algonquin Power & Utilities Corp." and New Hydrogenics will continue the Hydrogenics business as "Hydrogenics Corporation".
