Pure Hydrogen Secures $2.5M Loan to Fuel Vehicle Expansion
Pure Hydrogen Corporation has locked in a $2.5 million loan facility to accelerate its clean energy vehicle rollout, aiming to capitalise on a growing sales pipeline in Australia and the US.
- Secured $2.5 million loan facility with 15% interest
- Loan backed by first-ranking security over company assets
- 28 million options issued exercisable at $0.13 each
- Funding supports expanding hydrogen and electric vehicle deliveries
- Focus on operational stability and market growth in Australia and US
Strategic Funding to Accelerate Growth
Pure Hydrogen Corporation Limited (ASX – PH2) has taken a significant step to bolster its growth trajectory by securing a $2.5 million loan facility from Gam Company Pty Limited. This injection of capital is designed to provide the company with the working capital flexibility needed to expedite the rollout of its clean energy vehicle fleet, a cornerstone of its strategy to lead in zero-emission transport solutions.
The loan facility, carrying a relatively high annual interest rate of 15%, is secured by a first-ranking charge over Pure Hydrogen’s assets. Notably, the company retains the option to repay the loan early without penalty, offering strategic financial agility as it navigates its capital structure and funding needs.
Supporting a Growing Sales Pipeline
Pure Hydrogen’s Managing Director, Scott Brown, emphasised the importance of this funding in maintaining momentum with existing customer contracts and expanding its market presence. The company currently has multiple vehicles in production to meet orders from large Australian industrial and construction clients, alongside anticipated follow-up sales domestically and in the US.
By securing this facility, Pure Hydrogen aims to ensure timely delivery of its hydrogen fuel cell and electric vehicles, reinforcing its position as a first-mover in a rapidly growing sector. The funding is expected to underpin operational stability in the near term while the company pursues longer-term financing solutions and continues to build its customer base.
Options Issuance and Capital Considerations
As part of the loan agreement, Pure Hydrogen will issue 28 million options exercisable at $0.13 each, with a three-year expiry. This element introduces potential future dilution but also aligns investor interests with the company’s growth prospects. The balance between immediate liquidity and long-term capital management will be a key focus for stakeholders.
Positioning in the Zero-Emission Sector
Beyond vehicle deliveries, Pure Hydrogen is advancing infrastructure initiatives to support zero-emission transport solutions. Its strategic investments, including interests in natural gas projects and early-stage clean energy ventures, signal a broader ambition to capture value across the clean technology ecosystem.
With the clean energy vehicle market gaining momentum, Pure Hydrogen’s ability to leverage this funding to meet demand and expand its footprint will be closely watched by investors and industry observers alike.
Bottom Line?
This funding milestone sets the stage for Pure Hydrogen’s next growth phase but raises questions about capital costs and market execution.
Questions in the middle?
- How will the high interest rate and options issuance impact Pure Hydrogen’s future capital structure and shareholder dilution?
- What are the timelines and scale for converting the current sales pipeline into revenue?
- How will Pure Hydrogen balance vehicle rollout with infrastructure development to sustain long-term growth?
