LONDON, UK: Hydrogen Future Industries (AQSE:HFI), a developer of proprietary wind and water-based green hydrogen production systems, announced the acquisition of a suite of international patents which are relevant to the systems being developed by the company, by its joint venture subsidiary HFI IP Holdings Limited.

Highlights:

• Acquisition significantly enhances IP around Hydrogen Future Industries wind-based hydrogen production system
• Potential wider commercial applications for patents beyond HFI’s systems – potential for early cash flow generation
• Acquisition being made by way of the forgiving of a loan to the Vendor, cash payments, issue of Consideration Shares at 10p and Warrants

The patents being acquired pursuant to the Acquisition (the “Patents”) were granted to HW Power Limited (the “Vendor”) in respect of work undertaken by Timothy Blake between 2015 and 2018, prior to him joining Hydrogen Future Industries as Chief Executive Officer of HFI Energy Systems Limited, the Company’s wholly owned product development subsidiary.

The Patents, which are listed in the Appendix below, cover a range of works including ducted wind turbine rotor configurations; a dynamic telescopic tower to optimise wind farm energy production and reduce maintenance cost; a variable hydraulic drive and electro-magnetic clutch to increase efficiency and lower cost of energy production; and the conversion of stored energy to green hydrogen.

The Board believes the Patents may have commercial applications within both the Company’s future wind-based green hydrogen production systems and the wider wind energy generation sector.

The Acquisition is being made by way of:

• the issue to the Vendor of 5,200,000 new ordinary shares in HFI at an issue price of 10 pence per share (the “Consideration Shares”);
• the forgiving of a loan made to the Vendor by the Company on 16 December 2021 of US$150,000 which was to acquire exclusivity rights with the Vendor for the Acquisition;
• additional aggregate cash payments of £33,000 (“Cash Payments”); and
• the issue to the Vendor of warrants over a further 2,500,000 new ordinary shares in HFI with an exercise price of 12 pence per warrant, which will expire three years from the date of issue (the “Warrants”). The first 1,625,000 will be issued today, 5 October 2022.