ASC - Ardmore Shipping inks strategic investment & JV with Element 1 and Maritime Partners

Ardmore Shipping (ASC) trades 5.5% higher after hours on signing a letter of intent with Element 1 ((E1)) and Maritime Partners ((MP)) wherein the parties propose to establish a joint venture for the purpose of delivering E1's unique methanol-to-hydrogen technology to the marine sector and also make certain other investments.Element 1 is a developer of advanced hydrogen generation systems used to power fuel cells with broad use in mobile applications and remote locations.Maritime Partners is a provider of flexible financing solutions and newbuilding support to the maritime industry, with a focus on Jones Act vessels and inland marine transportation.MP will make an investment in Ardmore in the form of $40M in perpetual preferred shares in two tranches; Ardmore will purchase a 10% equity stake in E1 in exchange for $4M cash plus 950K ASC common shares.The total consideration is estimated to be $11M based on Ardmore's net asset value as of February 2021; MP

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Ardmore Shipping inks strategic investment & JV with Element 1 and Maritime Partners