Clean Logistics, the German-based carbon zero truck and bus conversion company, has announced that it will file for insolvency proceedings for itself and its subsidiaries after efforts to secure financing have failed. In a recent announcement, the company’s Board of Directors revealed the planned capital increase would not be carried out, leading to the inevitable insolvency.
The announcement comes after Clean Logistics had sought funding of approximately €4.86 million from the 2.7 million shares to be issued as part of the capital increase. However, it seems the current financial difficulties faced by the company have made it impossible to secure the necessary funding to carry out the raise.
It is not clear from the announcement why Clean Logistics has fallen into financial difficulties, but it is evident that the company had intended to make a public subscription offer in January with rights trading at identical conditions to shareholders in order to place the remaining shares of the capital increase.
In addition to financial struggles, Clean Logistics has also undergone significant personnel changes in top management. Jürgen Akkermann, who was only appointed CFO in September 2022, left the company in December. Dirk Graszt, who had been CEO and a member of the Board of Directors, stepped down at the beginning of this week.
Under Graszt’s leadership, Clean Logistics had made the strategic decision to expand its business model by converting existing vehicles to hydrogen drive and building new vehicles in the future.
The company had acquired the Dutch truck manufacturer GINAF Nederland in July 2022, which provided the Clean Logistics Group with an independent vehicle manufacturer with corresponding registration requirements for its own vehicles in Europe. However, to stabilise the company’s finances, GINAF Nederland has since been sold.
The high expenses associated with the planned significant expansion of Clean Logistics’ business activities were also cited as the reason for the company’s half-year loss of around €5.5 million, according to the annual report. Despite the financial difficulties, Clean Logistics had introduced its first hydrogen-powered truck, Fyuriant, in June 2022, followed by the converted Pyuron bus with fuel cell hydrogen drive in the summer of 2021. In August 2022, the company signed a framework agreement with GP Joule for the delivery of 5,000 hydrogen-electric 40-tonne trucks, with the handover of the vehicles scheduled for the period from 2023 to 2027. The company is also involved in publicly funded projects, including CryoTruck and BETH2REX, as well as a supply contract with Hylane, a subsidiary of the insurer DEVK.
