Renewable technology company Heliogen goes public in $ 2 billion PSPC deal
Heliogen, a California renewable technology company, has signed an agreement for a business combination with Athena Technology Acquisition Corp, a special purpose acquisition company (SPAC), making Heliogen a publicly traded company.
The combined company, which will be listed on the New York Stock Exchange under the symbol “HLGN”, will have a market value of approximately $ 2 billion. The transaction will be finalized in the fourth quarter of 2021.
The transaction is expected to bring in approximately $ 415 million in gross cash proceeds to the company, including $ 165 million from a private investment in Class A common stock in public stocks. Existing and new investors, including Salient Partners, Saba Capital, ArcelorMittal’s XCarb Innovation Fund, and funds and accounts managed by Counterpoint Global, have pledged to buy $ 165 million of Athena shares at $ 10 per action through private investment in public capital.
Among Heliogen’s existing investors are leading global figures in the fight against the climate crisis, including Bill Gates, Patrick Soon-Shiong, the Los Angeles-based investor and entrepreneur through his investment firm, Nant Capital, Steve Case via The Rise of the Rest from Revolution. Â® Seed Fund and Neotribe Ventures.
The product will be used to expand the manufacture of heliostats, support the development of global projects, and research and develop next-generation heliostat technology. It will also be used to finance the balance sheet.
Upon closing of the transactions, Heliogen’s leadership will remain intact and Bill Gross will continue to serve as the Chief Executive Officer (CEO) of the combined company. Phyllis Newhouse, CEO of Athena, will join the board of directors of the combined company which will include representation from Athena and Heliogen.
Gross, Heliogen Founder and CEO, said: âWe are delighted to partner with Athena to leverage our collective expertise as we execute our strategy to accelerate Heliogen’s growth and evolve our concentrated solar technology. revolutionary for the global energy market.
Heliogen’s proprietary concentrated solar power system powered by artificial intelligence aims to deliver low-cost renewable energy in the form of heat, electricity or hydrogen fuel. The base system would provide industrial grade heat capable of replacing fossil fuels in industrial processes, including the production of cement, steel and petrochemicals. Heliogen’s technology can also enable the production of electricity through the addition of a supercritical CO2 turbine and the production of green hydrogen in combination with an electrolyzer.
According to Mercom Capital Group’s recently released first half and second quarter 2021 solar financing and mergers and acquisitions report, Heliogen has raised $ 108 million in two rounds of funding to accelerate global deployment of its solar refinery technology .
PSPCs are designed to take companies public without going through the lengthy IPO process. With the uncertainty resulting from the pandemic on public markets, the number of after-sales services is increasing.
Harsh is a journalist at Mercom India. Previously with Indian Express, he covered stories of general interest. He holds an MA in Journalism from the Symbiosis Institute of Media and Communication in Pune.
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