HydrogenOne Capital Growth PLC on Friday said it expects one of its portfolio companies to enter administration following an unsuccessful fundraise.
The fund investing in clean hydrogen companies revealed that its portfolio company, German green hydrogen project developer HH2E, has failed to secure adequate financing for its first development project.
HydrogenOne said that its failure to secure suitable funding in terms of both timing and scale has created material uncertainty over HH2E’s future, with it now anticipating HH2E will enter administration.
Shares in the fund fell 25% to 28.40 pence on Friday morning in London.
As a creditor of HH2E through shareholder loans of approximately £1 million, Hydrogen noted that German insolvency law subordinates shareholder loans against other creditors.
HH2E represented 8% of HydrogenOne’s net asset value as of September 30, with the firm valuing it at £11 million.
On Wednesday, HydrogenOne reported that its NAV for its third-quarter fell 2.7% on-quarter to 100.81 pence from 103.60 pence. Year-on-Year, its NAV was also down marginally from 101.42 pence.
The firm owed the on-quarter NAV decline to a combination of negative exchange rate impacts, fund costs and valuation changes in its portfolio companies, adding that uplifts in its private holdings were offset by valuation decreases in HH2E and Elcogen.
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