US-based sustainable fuels manufacturer, XCF Global Capital Inc., is actively engaged in merger discussions with a domestic special purpose acquisition company (SPAC), signaling a valuation of $1.75 billion. The merger, subject to various conditions including due diligence and the finalization of a definitive agreement, is designed to facilitate XCF's entry into the public markets.
Specializing in the production of renewable diesel, sustainable aviation fuel (SAF), and other biofuels derived from renewable sources such as waste vegetable oil and animal fats, XCF Global Capital operates multiple plants in North America.
The New York-headquartered firm has signed a letter of intent (LoI) with Focus Impact BH3 Acquisition Corp., a SPAC majority-owned by US private investment firm Focus Impact Partners LLC. The SPAC conducted its initial public offering (IPO) in October 2021 and has until July 31, 2024, to finalize an initial business combination.
While the negotiations are ongoing, there is no guarantee that the transaction will be executed or consummated, as stated in a recent press release by Focus Impact BH3 Acquisition Corp.
“This partnership into the public markets broadens our investor brand, and the combined company will have a strong platform to grow in the rapidly expanding market for sustainable fuels,” commented XCF's Chief Executive, Mihir Dange.
