Pure Hydrogen Shares Rise 11% on Investor Update

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Aussie hydrogen stock Pure Hydrogen [ASX:PH2] exited a trading halt on Thursday following ASX queries about its June investor presentation.

Trading in PH2 shares was suspended on 27 June, following inquiries made by the ASX regarding a PH2 presentation released on 23 June.

On Thursday, trading in Pure Hydrogen stock resumed — and an updated presentation released.

In late afternoon trade, PH2 shares were up 11%.

While PH2 is up 25% over the past 12 months, the hydrogen stock is down 55% year to date.

pure hydrogen asx

Source: Tradingview.com

Pure Hydrogen resumes trading after H2X queries

This morning Pure Hydrogen presented its business and strategies update to investors with a specific focus on its Emerald and Turquoise hydrogen, fuel cell vehicles and Eastern Hydrogen Superhighway.

PH2 outlined its existing 22% stake in H2X, 19.9% interest in Botala Energy and 30% in the Serowe projects in Botswana.

Its stake in H2X was a big point of discussion between it and the ASX in a lengthy correspondence released to the market on Thursday.

The ASX noted that it would not reinstate PH2’s securities until the hydrogen stock confirmed it had unfettered access to H2X’s information on a timely basis.

PH2 must have access to this information to be compliant with ASX’s listing rules.

The ASX also wanted Pure Hydrogen to use the equity method when accounting for H2X, including PH2’s share of H2X’s profit or loss.

The ASX argued Pure Hydrogen ‘exerts significant influence over H2X by owning more than 20% and by having representation on the board of directors.’

In response, Pure Hydrogen noted:

‘Pure Hydrogen now receives regular information from H2X and has access to information including financial and operational reports following recent requested changes. Pure Hydrogen has requested greater accountability and reporting, which was agreed to by H2X’s Management. Accordingly Pure Hydrogen can confirm that it has access to all relevant information from H2X as and when required.’

Regarding the financial accounting of H2X, PH2 replied:

The Company has started preparation of its financial statements for the financial year ended 30 June 2022 and, as is the Company’s usual practice, it is reviewing all accounting policies and treatments. As part of this process, it will engage the Company’s auditor about its accounting treatment of its investments.

This would include the accounting treatment of Pure Hydrogen’s Investments in Associates and Joint Ventures including its investment in H2X. At this stage the Company is likely to adopt the equity method for its H2X investment for the 30 June 2022 financials and this will be reviewed by its directors when they consider the 30 June 2022 financials.

Pure Hydrogen investor presentation

In a re-release of its investor presentation, Pure Hydrogen said two new HFCV manufacturing sites have been set up in Sale Victoria and Sweden through its H2X division.

H2X now holds a Swedish subsidiary with signed MOUs for Gothenburg and Trelleborg, with vehicles expected to be delivered in 2023.

In aid of the fast-approaching benchmark, H2X has been working closely with the Malaysian Government based in Sarawak, for delivery of vehicles and H2 generators.

$3 million has been raised for H2X in a second funding round, with a 60% premium on the initial round.

Pure Hyrogen was sure to put in a third of the funds raised, a total of $1.05 million, so that it was able to keep hold of its 21% stake.

The company stated that by 2023, H2X should be due for its IPO.

The hydrogen energy company said its JJ Waste demonstration trucks have upcoming trials due to be carried out in Queensland by the end of the year.

Pure Hydrogen says JJ Waste has a ‘huge nationwide fleet’ awaiting a H2 fuel transition.

In terms of Caboolture Waste being transformed into hydrogen under FEED and approvals, these have been progressing to such an extent that the company’s Emerald Hydrogen project is now looking at a target of around 2.5 tonnes of hydrogen to be produced a day.

The company is exploring ways to develop four large scale compressed hydrogen export projects, with 453 PJ in 100% owned Queensland gas projects.

Pure Hydrogen has now also secured the Geelong site via its CACH2 partnership.

Hydrogen, renewables, and Europe’s energy crisis

Rising energy prices have been one of the biggest issues facing businesses and households.

Especially in Europe.

As Europe shuns Russian energy, it must service its energy needs by other means.

But how?

Our resident small-cap expert Ryan Clarkson-Ledward, who is also the editor of Exponential Stock Investor, has found one Aussie small-cap that could help with Europe’s energy transition.

If you’d like to find out more, you can read about it here.

Regards,

Kiryll Prakapenka

For Money Morning

About Kiryll Prakapenka

Kiryll Prakapenka is a research analyst focusing on investigating the biggest trends in investments. Kiryll brings sound analytical skills to his work, courtesy of his Philosophy degree from the University of Melbourne. A student of legendary investors and their strategies, Kiryll likes to synthesise macroeconomic narratives with a keen understanding…

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