Organic Flower Investments Group Inc. (Organic Flower) has acquired a 90 per cent equity interest in California-based PowerTap Hydrogen Fueling Corp. (PowerTap).
With this development, Organic Flower and PowerTap will work together to develop a hydrogen fueling station network in stages. The stages consists of engineering and design; ongoing development of PowerTap 3.0; and permitting and site preparation. The development of the hydrogen fueling station network is expected to commence in 2021. The anticipated aggregate cost of all stages of development is approximately $17 million. At each stage of development, Organic Flower and PowerTap plan to secure financing of the project through available government financing and credits, equity, debt and convertible debt offerings. The timing of the development to the next stage and the cost of each stage is subject to the success at each stage, the general development of the hydrogen fueling industry and the availability of funding.
The investment in PowerTap aligns with the Organic Flower’s investment policy, which was previously amended and restated to include the renewable energy sector as an area of focus. The amended and restated investment policy is available for review on the Company’s website and will be tabled for ratification at the company’s next annual general meeting of shareholders.