New Era Helium, Inc. (NEH) has successfully completed its previously announced business combination with Roth CH V Holdings, Inc. and Roth CH Acquisition V. Co., marking a significant milestone in the company’s growth trajectory. The transaction, which was approved by stockholders on November 26, 2024, has resulted in the combined entity operating under the name ‘New Era Helium, Inc.’ and is set to begin trading on Nasdaq under the ticker symbols ‘NEHC’ and ‘NEHCW’ on December 9, 2024.
The completion of this business combination and subsequent Nasdaq listing represents a pivotal moment for New Era Helium as it seeks to establish itself as a leading consolidator of helium and natural gas production. With over 137,000 acres in Southeast New Mexico and 1.5 billion cubic feet of proved and probable helium reserves, NEH is strategically positioned to capitalize on the growing demand for helium, particularly in the rapidly expanding field of data centers powering artificial intelligence.
In conjunction with the business combination, NEH has secured significant financing to support its growth initiatives. On December 6, 2024, the company entered into a series of financing transactions with ATW Partners Opportunities Management, LLC, including a $75 million equity purchase agreement, an advance of $10 million in senior secured notes, and the issuance of warrants for up to an additional $30 million in common stock.
The company’s strategic positioning in the helium market is further bolstered by its recent announcement of a non-binding joint venture with Sharon AI, Inc. to construct a 90MW net-zero Tier 3 data center within the Permian Basin. This innovative project aims to combine Sharon AI’s expertise in high-performance computing with NEH’s extensive helium and natural gas reserves. The proposed state-of-the-art facility is designed to be powered by sustainable energy and is expected to offset approximately 250,000 metric tons of CO2 annually through carbon capture technology.
E. Will Gray II, Chairman and Chief Executive Officer of New Era Helium, expressed enthusiasm about the company’s Nasdaq listing, stating that it ‘marks a significant moment in our corporate journey, enhancing our public profile within the industry, and broadening our reach to institutional investors in the AI datacenter, and Helium markets.’
The Nasdaq listing is anticipated to enhance New Era Helium’s visibility and attract U.S. investors interested in energy infrastructure and sustainable innovation. This increased exposure could prove crucial as the company seeks to capitalize on the growing demand for helium in various high-tech applications, including the burgeoning field of AI-powered data centers.
As the global demand for helium continues to rise, driven by its critical applications in technologies such as MRI machines, semiconductor manufacturing, and rocket propulsion, New Era Helium’s strategic reserves and production capabilities position it as a key player in meeting this demand. The company’s focus on the Permian Basin, known for its rich natural gas reserves, provides a stable foundation for helium extraction as a byproduct of natural gas production.
The completion of the business combination and Nasdaq listing comes at a time when the helium market is experiencing significant supply constraints and price volatility. New Era Helium’s entry into the public markets as a vertically integrated helium producer could potentially help address some of these market challenges while providing investors with exposure to this critical resource sector.
As New Era Helium begins its journey as a publicly traded company, industry observers will be watching closely to see how the company leverages its assets and strategic partnerships to capitalize on the growing demand for helium and sustainable data center solutions. The company’s success could have far-reaching implications for the helium supply chain, the development of AI infrastructure, and the broader push towards more sustainable energy practices in the technology sector.
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