Power & Digital Infrastructure II (XPDB) Adds PIPE, JV to Montana Technologies Deal
by Nicholas Alan Clayton on 2024-02-02 at 8:56am

Power & Digital Infrastructure II (NASDAQ:XPDB) has added a $5 million PIPE to its combination with sustainable air conditioning company Montana Technologies, which has also committed to invest $10 million into a new joint venture.

Affiliates of Power & Digital’s executive team and Stuart Porter, who is to serve as Montana’s post-close chairman, put up the funds for the PIPE and will receive 588,236 Class A shares (about $8.50 per share) in return.

Montana also announced that it has launched a 50/50 joint venture with GE Ventures to incorporate Montana’s proprietary AirJoule water capture technology into systems marketed by GE Vernova in the Americas, Africa and Australia.

GE Vernova will license portions of this intellectual property and Montana will invest $10 million into the joint venture. Montana is expected to invest an additional $90 million into it according to the partners’ business plan. It will, however, need to amend its existing license agreement with Battelle Memorial Institute in order for this partnership to go forward.

Power & Digital announced its $500 million combination with Montana in June 2023. Ronan, Montana-based Montana Technologies manufactures a dual-chamber design intended for a water harvesting process to solve legacy thermal constraints.

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