Hydrogenics Corporation (NasdaqGM:HYGS) announced that it has entered into a subscription agreement for private placement of 3,537,931 common shares at $5.80 per share for gross proceeds of $20,520,000 with L'Air Liquide S.A. (ENXTPA:AI) Partnership on December 21, 2018. Post the transaction the investor will hold approximately 18.6% stake in the company. The investor will have the right to nominate one director to the board of directors of the company and will be subject to certain restrictions, including lock-up, transfer, standstill and voting restrictions, subject, in each case, either to certain ownership threshold requirements or for a period of one year from the date of the subscription agreement.

The transaction is subject to certain closing conditions, including the receipt of all applicable stock exchange approvals.