FuelCell Energy (FCEL) Notified that POSCO is Terminating MOU

June 20, 2018 5:35 PM EDT

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FuelCell Energy (NASDAQ: FCEL) disclosed in an SEC filing:

FuelCell Energy, Inc. (the “Company”) continues to engage in discussions with POSCO Energy Co. Ltd. (“POSCO”) regarding their relationship and the direction of the fuel cell business in the South Korean and Asian markets, as well as POSCO’s future in the fuel cell business. POSCO has advised the Company that it intends to exit from the fuel cell business during 2018. The Company and POSCO will continue to discuss the method and manner of POSCO’s exit from the fuel cell business.

As previously disclosed, on March 17, 2017, the Company entered into a Memorandum of Understanding for Market Transition (“2017 MOU”) with POSCO to engage in discussions (i) to amend certain of the POSCO Agreements (as defined in the 2017 MOU), and (ii) relating to the development of market strategies to further the parties’ mutual interests. The 2017 MOU provided the Company with certain market access rights in Asia during the period of such discussions. By its terms, the 2017 MOU could be terminated by either party upon thirty days’ written notice if definitive amendments to the POSCO Agreements were not entered into by September 30, 2017.

On June 15, 2018, POSCO notified the Company in writing that it was terminating the 2017 MOU effective July 15, 2018.

Pursuant to the terms of the 2017 MOU, notwithstanding its termination, the Company will continue to execute on previously developed fuel cell projects in Korea. In addition, the Company may also fulfill any sales commitments in Asia secured in writing prior to July 15, 2018.

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