Why Is Fusion Fuel Stock Rising Pre-Market?

Fusion Fuel Green PLC (HTOO) has signed a non-binding letter of intent (LOI) to team up with a private energy firm in South Africa to develop a specialized fuel project for an industrial site in the region. 

Under the agreement, Fusion Fuel will own a 51% majority stake in the joint venture and will also invest €480,000 ($559,010) over four months.  For their first project, the joint venture plans to use the unnamed partner’s boiler technology to set up an energy system at a commercial site in South Africa. The LOI facilitates a preferential return of capital to Fusion Fuel along with earning 10% interest per year on its investment. 

The energy provider will have the first opportunity to participate in the partner’s future projects for the next two years. It is expected that the project could bring in around $248,000 in free cash flow during the first year, with total earnings over five years expected to reach nearly $1.27 million.

“Not merely a development opportunity, it would allow us to invest in an awarded and contracted project with immediate revenue implications,” said CEO John-Paul Backwell.

Fusion Fuel Green stock traded over 5% in Monday’s premarket. On Stocktwits, retail sentiment around the stock remained ‘bearish’ territory with ‘extremely low’ message volume in 24 hours. 

In late July, the company had finalized a deal for a private investment with investors to raise $4.3 million. Fusion Fuel Green stock has lost over 78% year-to-date and over 82% in the past 12 months.

Exchange Rate: €1 = $1.16

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