Verde Clean Fuels Boosted by $50 Million Equity Injection from Cottonmouth Ventures
Deal News | Dec 19, 2024 | Global Cleantech Capital
Verde Clean Fuels, Inc., a company committed to clean energy solutions, has announced a significant equity investment by Cottonmouth Ventures, LLC, a wholly-owned subsidiary of Diamondback Energy, Inc. The $50 million investment involves the purchase of 12.5 million shares of Verde's Class A common stock at a price of $4.00 per share. The deal is expected to close during the first quarter of 2025, contingent upon standard closing conditions. This marks Cottonmouth's second investment in Verde, bringing their total stake to $70 million and establishing them as the second-largest shareholder in the company. The investment is seen as a strategic partnership aimed at leveraging Verde's technology to address economic and environmental challenges in the Permian Basin, particularly regarding flaring and stranded natural gas. Verde's CEO, Ernest Miller, emphasized the importance of this partnership with Diamondback in their pursuit to deploy technology for clean energy production.
Sectors
- Clean Energy
- Oil & Gas
- Investment
Geography
- United States – The transaction and the participating companies, Verde Clean Fuels and Diamondback Energy, are based in the United States.
Industry
- Clean Energy – The article discusses Verde Clean Fuels, which is involved in clean energy solutions, focusing on reducing environmental impact in oilfield operations.
- Oil & Gas – Diamondback Energy is an oil & gas company, and the article discusses its subsidiary's investment in Verde Clean Fuels, highlighting its strategic interest in sustainable operations in oilfields.
- Investment – The article centers on an equity investment deal between Cottonmouth Ventures and Verde Clean Fuels, fitting the context of investment activities.
Financials
- $50 million – Value of the equity investment by Cottonmouth Ventures into Verde Clean Fuels.
- 12.5 million shares – Number of Class A common stock shares purchased by Cottonmouth Ventures.
- $4.00 per share – Purchase price of each share of Verde's Class A common stock.
- $70 million – Total investment amount by Cottonmouth Ventures in Verde Clean Fuels after this transaction.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Verde Clean Fuels, Inc. | Target Company | Company | Verde Clean Fuels is the recipient of the investment and operates in the clean energy sector. |
| Cottonmouth Ventures, LLC | Bidding Company | Company | Cottonmouth Ventures is making a $50 million equity investment in Verde Clean Fuels and is a wholly-owned subsidiary of Diamondback Energy. |
| Diamondback Energy, Inc. | Other Related Company | Company | Diamondback Energy is the parent company of Cottonmouth Ventures, engaged in oil and natural gas acquisition, exploration, and development. |
| Ernest Miller | CEO of Verde Clean Fuels | Person | Ernest Miller is the CEO of Verde Clean Fuels and is quoted regarding the investment's strategic importance. |