Special Purpose Acquisition Company (SPAC) Novus Capital Corporation II elected to merge with new gravitational and kinetic energy storage company Energy Vault after receiving target proposals from over 100 different companies.
Energy Vault has been valued at over US $ 1.1 billion and the merger would list the combined business – effectively continuing to trade as Energy Vault – on the New York Stock Exchange, Storage-Energie.news reported in September when the proposed deal was announced.
Novus Capital, a Delaware-incorporated blank check company, has filed a Form S-4 with the United States Securities and Exchange Commission (SEC), outlining the terms and details of the transaction, which will follow a shareholders meeting PSPC and regulatory approval. .
Energy Vault has only built one energy storage system to date, a 5MW commercial demonstrator project in Switzerland, and has yet to sell to secure sales. Indeed, according to Form S-4, the company has not yet perfected the design of the large-scale systems it markets.
Yet the leadership of Novus Capital discovered the high growth potential of the renewable energy storage market and Energy Vault’s “competitive approach” to meet this global need, based on its potential to provide storage. with lower level operating costs and higher efficiency than competing mechanical and thermodynamic technologies. among the compelling reasons for proposing the merger operation.
Novus was looking for opportunities in a wide range of industries and technologies, initially looking to acquire a high growth company, but instead opted for the merger strategy once Energy Vault was identified and hired.
Despite the lack of sales, Energy Vault found top investors including Saudi Aramco, Softbank Vision Fund and Enel Green Power, the latter being a strategic partner. In August, she closed a Series C funding round that raised $ 100 million.
It also has an experienced management team and the principles of its technology of lifting 35 ton weights on cranes and lowering them to release energy could provide a high level of durability as they are made from abundant and recyclable materials, Novus said.
The energy storage company suffered losses of around $ 25 million last year and admitted it faced the challenge of developing the final design of its platforms to be competitive against to other technologies over a number of years, which will make it difficult to transform a profit and maintain that status.
Assuming that no public shareholders exercise their repurchase rights and that no earn-out shares are issued as a result of the merger, Energy Vault shareholders will own 70.7% of the total shares of the company. combined, underwriters of a private investment in public capital (PIPE) commitment will own approximately 6.5%, public shareholders will own approximately 18.6%, holders of original shares will hold approximately 3.8% and holders of initial shares. Novus Capital Corporation II shares will hold approximately 0.4%.
Energy Vault will be the latest new energy storage technology provider to be publicly listed via a SPAC merger if the deal goes through: iron-flow battery company ESS Inc was listed on the NYSE a few years ago. days, while zinc battery storage provider Eos is listed on NASDAQ just under a year ago.