Hyzon has issued a special voting share to its acting CEO, Dr. Christian Mohrdieck, to ensure its proposed liquidation and dissolution plans proceed.
The troubled US fuel cell and truck firm issued a Series A preferred stock to Dr. Christian Mohrdieck, granting him a number of votes equal to all outstanding Class A common stock, to effectively guarantee approval of the liquidation plan.
However, these votes only activate if the number of Class A shares voting ‘for’ exceeds the combined number voting ‘against’ or ‘abstaining’. If that condition is met, the preferred share casts its full voting power in favour, effectively securing approval.
Hyzon’s board implemented this mechanism after two prior attempts to hold the vote failed due to insufficient shareholder participation. The company argues that without approval, bankruptcy may be the only alternative, potentially diminishing any remaining value for creditors and shareholders.
However, H2 View understands if passed, investors may miss out on salvaging any funds once creditors are paid. As common shareholders, they are last in the payout hierarchy and will only receive funds if assets remain after all debts are settled.
Mohrdieck, a former Daimler executive, had served as Chief Technology Officer from January 2024. He was appointed acting CEO in February after Parker Meeks left the role.
Hyzon initiated the proceedings early this year after its management concluded there were “no viable strategic alternatives” to continue operating.
It had cited “inability to raise funding and the future uncertainty relating to the availability of government subsidies,” nodding to the tight criteria under California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP).
Hyzon’s Q3 2024 results revealed the firm had burned through nearly $25m in cash reserves, leaving it with just $6.5m. It followed a significant period of instability in the company’s near-five-year history, characterised by governance issues and strategy overhauls.
Read more:The year that rocked and reshaped Hyzon Motors
In February, the company was delisted from the Nasdaq stock exchange and announced its expected SEC deregistration.
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