Portland nuclear power company NuScale Power completed its SPAC merger generating approximately $380 million and creating a company valued at $1.9 billion.
Shares of NuScale started trading May 3 on the New York Stock Exchange under the ticker “SMR.”
The company will use the proceeds from this transaction for commercialization of its small modular reactor technology.
“Today marks a historic moment for NuScale as we become the first publicly traded company focused on the design and deployment of SMR technology. As a public company, we can accelerate our efforts to help meet the world’s urgent clean energy needs,” said NuScale President and CEO John Hopkins in a written statement.
NuScale merged with Spring Valley Acquisition Corp. (Nasdaq: SV), a Texas-based special purpose acquisition company, or SPAC. A SPAC raises money from investors and goes public as a shell company, then targets a private company to merge with and take public.
The deal was first announced in December.
“Spring Valley is pleased to have partnered with NuScale, and we look forward to embarking on this exciting next phase of our work together,” said Spring Valley CEO Christopher D. Sorrells in a written statement.
The company will continue to be led by Hopkins and his executive team. Sorrells is joining the company’s board of directors.
The transaction included a private investment in public equity, or PIPE, which accounts for $235 million of the proceeds generated. The company has been adding investors to this vehicle since December and those backers include steelmaker Nucor, DS Private Equity and Samsung C&T Corp.
NuScale was founded in 2007. Its existing strategic investors including Fluor Corp. (NYSE: FLR) rolled 100% of their equity into the newly formed public company. As such Fluor will continue to own the majority of the company. Fluor provides NuScale with engineering, project management, admin and supply chain support, according to news release.
“Fluor Corporation and NuScale were the only consortium, which began in 2013, to follow through on its Department of Energy partnership and deliver U.S. Nuclear Regulatory Commission design approval as well as a broad coalition of strategic investors to expedite the path to commercialization,” said Alan Boeckmann, Executive Chair of Fluor and member of NuScale’s board of managers in a written statement. “Today’s milestone marks another very important milestone on this green energy journey.”
