Hydrogen Utopia International PLC on Wednesday said it signed a conditional heads of terms agreement to buy a minority stake in London-based Carbon Capture & Sequestration Ltd.

Shares in Hydrogen Utopia rose 30% to 7.50 pence each in London on Wednesday morning.

London-based Hydrogen Utopia operates facilities that turn non-recyclable mixed waste plastic into hydrogen and other carbon-free fuels, new materials, or distributed renewable heat.

Under the agreement, Hydrogen Utopia will provide CCS with a loan of £500,000. This will be used towards the payment of the first instalment of the purchase price for the share capital of an unnamed medical cannabis cultivator. Hydrogen Utopia will consequently be given the option to acquire 49% of the issued share capital of CCS in return for the issue of 49 million ordinary shares of £0.01 each.

Last month, CCS agreed to buy 95% of the cultivator which operates in North Macedonia for €9.5 million. The consideration is payable in instalments of between €1 million and €2 million between June 2023 and December 2029.

Hydrogen Utopia said the acquisition will provide the company with a ‘stream of positive working capital’ to fund its operations and roll-out of projects.

Hydrogen Utopia Chief Executive Officer Aleksandra Binkowska said: ‘We are operating in difficult times that only the strongest will survive. I believe this option to acquire a major stake in the CCS business will give us access to much-needed cashflow.’

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