RENO, NV and NEW YORK, NY - XCF Global Capital, Inc., a company dedicated to sustainable aviation fuel (SAF) production, and Focus Impact BH3 Acquisition Co. (NASDAQ: BHAC), a special purpose acquisition company, announced a definitive Business Combination Agreement that is expected to result in XCF becoming a publicly-listed entity on NYSE or Nasdaq.
The agreement, which was finalized on March 11, 2024, will make XCF Global a leading SAF producer in North America, with an initial annualized production capacity of 38 million gallons following the acquisition of New Rise Renewables. The Reno, Nevada-based plant and adjacent site are key to this capacity, with the acquisition expected to close within the year.
XCF Global plans to scale its operations by converting additional strategic sites into SAF production facilities. The company has already acquired locations in Wilson, North Carolina, and Ft. Myers, Florida. These expansions are projected to increase total production capacity to over 150 million gallons of SAF per year within five years.
Mihir Dange, CEO of XCF Global, expressed optimism about the growth potential in the SAF sector and the company's commitment to being a leader in the space. Carl Stanton, CEO of Focus Impact BH3, echoed this sentiment and highlighted their shared goal of contributing to the reduction of the aviation industry’s carbon footprint.
SAF is considered crucial for the aviation industry's efforts to reduce carbon emissions. The U.S. government's Sustainable Aviation Fuel Grand Challenge aims to boost SAF production to 35 billion gallons per year by 2050 with an interim target of three billion gallons by 2030.
The proposed transaction values the combined company at an implied pro forma enterprise value of $1.84 billion. XCF shareholders are expected to retain approximately 91.4% ownership post-merger, subject to customary closing conditions. The transaction is anticipated to close in the second half of 2024.
This announcement is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. The actual results could differ materially from those projected. The investor conference call to discuss the transaction took place today at 9:00 AM ET.
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