Shares of Hyzon Motors (NASDAQ:HYZN) were given a jump-start on Monday on light volume, following the company’s decision to halt operations in the Netherlands and Australia after a comprehensive review of its businesses.
Last month, Hyzon Motors (HYZN), which develops fuel cell technology for heavy industry, said that because of “challenging market conditions” across Europe and Australia, it would evaluate its strategic options for those businesses and focus on the North America refuse industry. In announcing its decision, the company blamed waning government support for fuel cell-powered transportation and disbandment of hydrogen subsidies in many European countries.
“This was a complex and difficult decision,” Hyzon CEO Parker Meeks said, adding, “Given the challenges of bringing new technology to market in an emerging industry, we believe we need to focus our efforts on the North American market and refuse industry as well as overseeing our large fleet trial programs, which commence this summer.”
As a result of its decision to cease operations in the Netherlands and Australia, Hyzon (HYZN) expects to incur charges of ~$17M, of which ~$7M is expected to be in cash in Q2 and Q3 2024. The related cash payments will be made in Q3 and Q4 2024. The company also expects de-recognition of certain liabilities, which may result in non-cash gains in Q3 and Q4 2024.
Shares were up nearly 7% and in the green for a fourth consecutive day.