Ares Acquisition Corporation (NYSE:AAC) announced in an 8-K this morning that it has added up to $60 million in new commitments to its combination with nuclear technology firm X-Energy while further dropping the target’s valuation.
The new money comes in the form of a $30 million increase to the preferred PIPE, which boosts the SPAC’s sponsor total equity investment in the transaction to $80 million, and a commitment to invest up to $30 million from X-Energy founder Kam Ghaffarian.
Together with the other existing funding mechanisms, this deal is now expect to provide up to $534 million in gross proceeds to the target, assuming no redemptions. This would also represent more than half of the company’s equity, under the re-struck terms.
Along with the announcement of the new funding, Ares noted that it has slashed X-Energy’s valuation a second time to $1.05 billion from $1.8 billion under a previous amendment and $2.1 billion at announcement.
The parties initially announced the deal in December 2022 and its post-close enterprise value is now expected to be $1.18 billion according to a refreshed presentation.
Rockville, Maryland-based X-energy has developed small modular nuclear reactor technology designed to provide nuclear plants for projects ranging from individual industrial sites to regional utilities.
Terms Tracker for the Week Ending September 22, 2023 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. SPACs finally saw two new S-1 filings this week, the first to file since August 24th. Hainan Sirius Acquisition Corp. filed first on Thursday and...
Latest SPAC Liquidations: LF Capital Acquisition Corp. II LF Capital Acquisition Corp. II (LFAC) to Liquidate on October 3, 2023 LF Capital Acquisition Corp. II (Nasdaq: LFAC), today announced that the directors of the Company have determined to dissolve and liquidate the Company. The redemption of the Public Shares is expected to be completed on...
Latest Non-Redemption Agreements: Yotta Acquisition Corp.,Live Oak Crestview Climate Acquisition Corp. Yotta Acquisition Corp. (YOTA) Adds Non-Redemption Agreements Yotta Acquisition Corp. (NASDAQ:YOTA) entered into non-redemption agreements with certain unaffiliated third parties in exchange for such third parties agreeing not to redeem an aggregate of 598,680 shares of the Company’s common stock. In exchange for the foregoing...
Twin Ridge (NYSE:TRCA) announced this afternoon that it plans to convene and then adjourn its extraordinary general meeting of its shareholders originally to be held on September 26 at 11:30 a.m., Eastern Time. Twin Ridge intends to hold the new meeting at 11:30 a.m., Eastern Time, on October 3, 2023. Additional details were not given as to...
Social Leverage Acquisition Corp I (Nasdaq: SLAC) and W3BCLOUD Holdings Inc. announced this afternoon that they have mutually agreed to terminate their business combination agreement. The reasons cited were once again “due to existing market conditions”, which most likely implies the current capital market conditions as well as the fact that W3BCLOUD works within the...