RMG Acquisition Corp. III (RMGC) Cuts H2B2 Valuation in Deal Tweaks

RMG III (NASDAQ:RMGC) slashed its purchase price of hydrogen power firm H2B2 Electrolysis by nearly half in a raft of deal amendments filed today.

H2B2 will now receive a purchase valuation of $400 million, down from $750 million, and RMG III will no longer be required to maintain at least $5 million in cash available in order for the deal to close.

The transaction does still carry a minimum investment amount requiring the parties to arrange funding for the post-transaction company by close, but this has been reduced to $30 million from $40 million.

The terms earlier included a provision by which H2B2 would receive a 10% premium to the existing purchase price if it managed to independently raise $15 million or more during the de-SPACing process, but this clause has also been removed.

Other changes are largely of the technical clean-up variety and come at a time when RMG III needs to get moving with getting this combination through to a close.

The deal was announced in May of this year and RMG III currently has until February 9, 2024 to complete a deal without seeking an extension.

Madrid-based H2B2 manufacturers hydrogen electrolyzer components and is developing a number of projects for solar-to-hydrogen fuel plants.

Last month, it completed the first phase of development for its green hydrogen plant in Fresno, California, which is now operational with an output of one ton of hydrogen per day.