HydroGen LLC Secures $2 Million in Bridge Financing From Samsung C&T Corporation and Federated Kaufm

HydroGen Corporation today announced that the Company and HydroGen, LLC, the Company's wholly-owned subsidiary, entered into a Loan and Security Agreement on August 22, 2008 with Samsung C&T Corporation and Federated Kaufmann Fund pursuant to which Samsung and Federated Kaufmann have each agreed to loan $1 million to HydroGen, LLC in two equal installments. A first tranche of $1 million of the loan was released to HydroGen, LLC at the closing on August 22. A second tranche of $1 million will be released to HydroGen, LLC on or before September 30, 2008 based on the achievement of certain milestones.

The proceeds will be used for working capital purposes, including continuing operation of the Company's commercial demonstration power plant at ASHTA Chemicals, Inc. Specifically, the proceeds will sustain operations through the next three to four months during which the Company will seek long-term financing in the form of an equity investment or an acquisition of the Company.

The $2 million bridge loan is secured by substantially all of the assets of HydroGen, LLC and the Company, bears interest at the rate of 12% per annum, and becomes due and payable on December 15, 2008 (which may be extended to no later than February 1, 2009 if the Company is in the process of obtaining shareholder approval for a transaction that will result in the payoff of the loan). Additionally, Samsung and Federated Kaufmann have each received a warrant to purchase up to 400,000 shares of common stock of the Company, exercisable in two equal amounts with each tranche of the loan.

Source: Fuel Cell Today