Hydrogenics Corporation, a leading developer and manufacturer of hydrogen generation and hydrogen-based power modules, today announced that it has entered into a binding agreement with a syndicate of lenders led by Cinnamon Investments Limited for an 18 month, $7.5 million loan facility.

"As we look forward toward growing demand from our customers, we need to increase our manufacturing throughput and working capital base. At this stage of our development we believe that a short term debt facility better fits the requirements of our business," said Daryl Wilson, President & CEO of Hydrogenics.

The facility is structured as an 18-month term loan with quarterly interest payments calculated at an 11% annual interest rate.

As consideration for providing the loan facility, the lenders will be granted 250,000 share purchase warrants. Each warrant will be exercisable for one common share of Hydrogenics at an exercise price of US$15.00 per common share. The warrants will be non-transferrable and will expire four years from the date of closing.

Origin Merchant Securities Inc. acted as advisors to Hydrogenics on the loan facility.