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Highlights
- Grid scale energy storage startup Energy Vault entered into a business agreement with a SPAC, Novus Capital Corporation II, in order to list on the NYSE.
- The transaction values the merged entity to about US$ 1.1 billion and also offers an additional US$ 388 million in gross cash to the company.
- The combined entity will have ticker symbols of GWHR and GWHR WS.
US based renewable energy storage solutions startup Energy Vault is planning to publicly list on the New York Stock Exchange through a special purpose acquisition vehicle (SPAC)
The company entered into a business agreement on 9 September with a tech enabled SPAC with a focus on the sustainability and social equity sector, Novus Capital Corporation II (NYSE:NXU).
IPO transaction details
The combined entity is expected to have an implied pro forma enterprise value of US$ 1.1 billion and also offer a further amount of US$ 388 million in gross cash to the company.
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The transaction is expected to close in Q1 2022, subject to closing requirements. Also, Novus received US$ 100 million in common stock PIPE (private investment in private equity), according to the transaction details.
The Novus and Energy Vault merged entity is expected to trade under the ticker symbols GWHR and GWHR WS. Also, Larry Paulson, the chairman at Novus, will join the post-closing Board of Directors.
The news comes after Energy Vault raised about US$ 100 million in Series C funding recently from scientific startups investor Prime Movers Lab, venture capital major SoftBank, Saudi Aramco Energy Ventures, Helena and others.
Investment banks and financial advisors Goldman Sachs, Guggenheim Securities and Cowen handled the PIPE transaction.
Energy vault’s growth plans
The net cash from the transaction is expected to be used as capital for Energy Vault’s growth and also aid in the development of innovative and breakthrough technologies.
The company has developed a gravity based and grid scale energy storage platform to address the transition towards low carbon energy solutions.
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Bottom Line
SPACs have become a trend this year as they allow companies to bypass the regulatory process involved in an initial public offering (IPO). Since renewable energy is expected to account for a majority of the global energy mix by 2050, tech-based energy solutions have risen in popularity.
