Mississauga-based Hydrogenics Corp. said yesterday its shareholders have approved a refinancing deal that will see Algonquin Power convert to a corporation and acquire huge tax losses from the fuel cell developer.
About 99 per cent of those who voted approved the complex deal, under which Algonquin acquires the tax losses to offset higher future federal taxes on trusts.
The deal is expected to close in September.
Under its terms, Algonquin will become a corporation and pay $10.8 million to acquire $192 million worth of tax losses from Hydrogenics.
For Hydrogenics, the deal provides $10 million in new money to grow its alternative energy and fuel cell business. The company will transfer all its operations to a new entity dubbed New Hydrogenics, which will continue the company’s business and be renamed Hydrogenics Corp.
Old Hydrogenics, a shell company that will hold the $192 million in tax losses, will be renamed Algonquin Power Inc. and will own the power fund.