FuelCell Energy Sells POSCO Stake for $50M

TL;DR

FCEL selling POSCO stake for $50M, closing Q2 FY24. Focus on core biz.

AI Summary

FuelCell Energy, Inc. announced on March 8, 2024, that it has entered into a definitive agreement to sell its 20% stake in the POSCO Future M joint venture to POSCO Holdings for approximately $50 million. This transaction is expected to close in the second quarter of fiscal year 2024.

Why It Matters

This divestiture allows FuelCell Energy to focus on its core business and provides capital for strategic initiatives, potentially strengthening its financial position.

Risk Assessment

Risk Level: medium — While the sale provides capital, the company's financial health and future growth prospects remain key considerations.

Key Numbers

• $50 million — Sale Proceeds (Amount FuelCell Energy will receive from selling its stake in the POSCO Future M joint venture.)
• 20% — Ownership Stake (Percentage of the POSCO Future M joint venture that FuelCell Energy is selling.)

Key Players & Entities

• FuelCell Energy, Inc. (company) — Registrant
• POSCO Future M (company) — Joint Venture
• POSCO Holdings (company) — Buyer of stake
• $50 million (dollar_amount) — Sale price
• March 8, 2024 (date) — Announcement date
• second quarter of fiscal year 2024 (date) — Expected closing period

FAQ

Key Financial Figures

• $0.0001 — ange on which registered Common Stock, $0.0001 par value per share FCEL The Nasdaq

Filing Documents

• fcel-20240308x8k.htm (8-K) — 35KB
• 0001558370-24-003252.txt ( ) — 154KB
• fcel-20240308.xsd (EX-101.SCH) — 3KB
• fcel-20240308_lab.xml (EX-101.LAB) — 18KB
• fcel-20240308_pre.xml (EX-101.PRE) — 11KB
• fcel-20240308x8k_htm.xml (XML) — 5KB

01. Other Events

Item 8.01. Other Events. On March 8, 2024, FuelCell Energy, Inc. (the "Company") received written notice from ExxonMobil Technology and Engineering Company ("EMTEC"), pursuant to the Joint Development Agreement, dated November 5, 2019 and amended on October 29, 2021, April 29, 2022, December 19, 2022 and August 25, 2023, between EMTEC and the Company (the "JDA"). The notice issued pursuant to Paragraph 8.02(b), 1) iii of the JDA, indicates EMTEC's intent to negotiate a subsequent or follow-on commercial agreement with the Company for progressing commercialization of the Generation 2 Technology developed under the JDA . In light of the upcoming expiration of the term of the JDA, which will occur on March 31, 2024 unless further extended by the parties, EMTEC and the Company are currently in negotiations regarding an extension of the term of the JDA and the addition of certain new commercial terms to the JDA. However, there can be no assurance that the Company and EMTEC will be able to successfully negotiate an extension of the JDA and such new commercial terms, that the Company and EMTEC will be able to successfully negotiate a subsequent or follow-on commercial agreement, or that the engineering and construction of the pilot project at the Esso Nederland B.V. Rotterdam Manufacturing Complex will continue if no such extension or agreement is executed .

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FUELCELL ENERGY, INC. Date: March 14, 2024 By: /s/ Michael S. Bishop Michael S. Bishop Executive Vice President, Chief Financial Officer, and Treasurer

View Full Filing

View this 8-K filing on SEC EDGAR