Three and a half year years after it raised $100 million in an initial public offering, Vancouver hydrogen fuel cell maker Loop Energy (TSX:LPEN) has sought creditor protection while it attempts to reorganize or arrange a sale of the company and its assets.
Trading of Loop Energy shares were suspended July 18, and the company was set to be delisted from the Toronto Stock Exchange as of Tuesday, Sept. 3.
According to a notice to creditors by the company’s insolvency trustee, Crowe MacKay and Co., Loop is not in receivership and has not filed for bankruptcy. Rather it filed a notice of intention to make a proposal under the Bankruptcy and Insolvency Act of Canada.
Under the application, which was granted Aug. 1 by the BC Supreme Court, the company seeks approval of interim financing and “the approval of the proposed sale and investment solicitation process.”
One of the lenders for an interim financing proposal is Chilliwack-based Teralta Hydrogen Solutions, according to BC Supreme Court documents.
Loop Energy was founded more than 20 years ago and specializes in making hydrogen fuel cells. In February 2021, the company went public on the Toronto Stock Exchange with a $100-million initial public offering.
The company debuted at $16.45 per share, but its stock value has continuously dropped ever since its IPO, falling to just $0.04 per share at the time its shares stopped trading.
Last year, the company announced plans to drastically cut staff and shut down a production facility in China, citing “challenging capital market conditions, including significant stock price declines in the hydrogen fuel cell sector since the beginning of the year.”
