Hyzon Motors Confirms Agreement Resolving Sec Investigation

28 September 2023

Hyzon Motors Inc. (Hyzon or the company) (NASDAQ: HYZN), a high-power hydrogen fuel cell technology developer and global supplier of zero-emission heavy-duty fuel cell electric vehicles, today announced a final resolution of the investigation by the U.S. Securities and Exchange Commission (SEC), subject to court approval. The investigation was previously reported by the company on its Current Report on Form 8-K on January 12, 2022, and updated in its Annual Report on Form 10-K for the year ended December 31, 2022 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.

"Hyzon is pleased to put this chapter behind us, and continue our disciplined execution of operational milestones including commercial vehicle deployments and fuel cell technology developments," said Hyzon Motors' Chief Executive Officer (CEO) Parker Meeks. "With a strengthened Board of Directors and leadership team, a streamlined product offering, and a rationalized geographic footprint, we look forward to accelerating the hydrogen industry."

Without admitting or denying the allegations in the SEC's complaint, Hyzon has agreed to pay a civil monetary penalty of $25 million in three installments: $8.5 million within 30 days of entry of final judgment; $8.5 million by December 31, 2024; and $8 million within 730 days of entry of final judgment. In the second quarter of 2023, Hyzon accrued a $22 million loss contingency, based upon management's assessment of the SEC investigation.

Also named in the SEC's complaint were Craig Knight, the company's former CEO and a former director, and Max C.B. Holthausen, a former managing director of the company's European subsidiary, Hyzon Motors Europe B.V. Knight and Holthausen also separately consented to the entry of final judgments, subject to court approval, resolving the SEC's allegations.

Further, former CEO Knight and Mark Gordon, Hyzon's former Chief Financial Officer and a former director, have voluntarily returned $252,000 and $122,500, respectively, to Hyzon relating to certain incentive compensation that the company previously paid them. 

Further details regarding the resolution can be found in the SEC's complaint and proposed final judgments, which are publicly available.

About Hyzon

Hyzon Motors is a global supplier of high-power fuel cell technology focused on integrating its solutions into zero-emission heavy-duty fuel cell electric vehicles. Utilizing its proven and proprietary hydrogen fuel cell technology, Hyzon aims to supply zero-emission heavy duty trucks to customers in North America, Europe, Australia, and New Zealand to mitigate emissions from diesel transportation - one of the single largest sources of global carbon emissions. Hyzon collaborates with partners across the hydrogen value chain to bring clean hydrogen to the market to support fuel cell vehicle deployments. Hyzon is contributing to the adoption of fuel cell electric vehicles through its demonstrated technology advantage, fuel cell performance and history of rapid innovation. Visit www.hyzonmotors.com.

SOURCE Hyzon Motors Inc.