Hydrogen Utopia says due diligence on Essential Energy continues

Britain’s Hydrogen Utopia International PLC (AQSE:HUI) on Tuesday released an update regarding its intention to acquire biofuels firm Essential Energy Holding Group Corp that puts in doubt the completion of the proposed transaction.

In February, HUI announced its plan to acquire Essential Energy through a reverse take-over worth about GBP 500 million (USD 639.5m/EUR 587.6m). At the time, the latter was described as a “profitable international” bio-energy company with over EUR 365 million (USD 397.1m) in revenue and over EUR 40 million in profits before taxes, based on the most recent unaudited consolidated accounts as of end-2022.

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In its Tuesday statement, HUI noted that newly received financial information from the target company has raised certain queries, prompting further enquiries.

“The further financial information provided is such that it could have a material effect on the valuation of Essential Energy. The parties are exploring this further,” HUI said, adding that it could not be certain whether the agreed deal would be completed.

(GBP 1 = USD 1.279/EUR 1.175)

(EUR 1 = USD 1.088)