Need some fuel in your tank? Some investors may be turning to HL Acquisitions (NASDAQ:HCCH), a blank-check company that is about to close its reverse merger. So what company is it taking public? And what else do you need to know about HCCH stock here?
To start, investors should know that HL Acquisitions is taking Fusion Fuel public. After shareholders voted to approve the merger last week, Fusion Fuel should soon start trading on the Nasdaq Exchange under the ticker HTOO. Importantly, Fusion Fuel is a player in the green hydrogen market, making HCCH stock interesting here.
With that in mind, here are 12 things to know about HCCH stock and the Fusion Fuel SPAC merger:
- Interestingly, HL Acquisitions has been trading since June 2018. This makes it one of the older special purpose acquisition companies on the market.
- When it came public, the company raised $50 million by offering 5 million units at $10 each.
- Importantly, this also means that HL Acquisitions is one of the smaller SPAC deals.
- After many months, HL Acquisitions chose to merge with Fusion Fuel in March 2020.
- Since then, HCCH stock has more than doubled.
- Investors should note that Portugal-based Fusion Fuel is a player in the green hydrogen market.
- Additionally, there is a key difference between regular hydrogen and green hydrogen.
- Green hydrogen is produced via the electrolysis of water, especially when all electricity involved comes from renewable sources.
- Fusion Fuel specifically uses solar power as part of this process.
- Investors should also note that Fusion Fuel says it can produce this green hydrogen at a larger scale and at lower costs than its competitors.
- Right now, Wall Street is increasingly bullish on hydrogen for powering everything from forklifts to freight trucks.
- However, regular hydrogen comes from the petroleum refining process.
Why HCCH Stock and Fusion Fuel Are Intriguing Here
So why does this really matter? And why should investors consider HCCH stock here?
To start, there is certainly a fair reason for criticism with HL Acquisitions and the upcoming Fusion Fuel SPAC merger. Unlike other high-profile deals, HL Acquisitions is smaller in scale. Additionally, as Vince Martin wrote for InvestorPlace, its management team does not specialize in the world of hydrogen.
Perhaps the most important piece of criticism comes from growing competition in the green hydrogen market. Many investors are likely familiar with Plug Power (NASDAQ:PLUG), which is a key player in the hydrogen fuel cell business. Thanks to a recent acquisition and supply-chain innovations, Plug now has a hand in green hydrogen as well.
Despite this criticism, investors should at least keep an eye on HCCH stock leading up to the closing of the reverse merger. Analysts are increasingly bullish on hydrogen. Automakers are promising hydrogen-powered fleets. Government bodies around the world are setting clean energy goals. All of these are catalysts for the hydrogen business, and potentially, for green hydrogen.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.