Verde Clean Fuels Receives $50M Investment from Cottonmouth Ventures
Deal News | Jan 29, 2025 | Global Cleantech Capital
Verde Clean Fuels, Inc., a company listed on NASDAQ under the ticker VGAS, has announced the successful closure of a $50 million equity investment by Cottonmouth Ventures, LLC, a wholly-owned subsidiary of Diamondback Energy, Inc. This investment marks Cottonmouth's second financial venture into Verde, making them the second-largest shareholder with a cumulative investment of $70 million. The deal involved Cottonmouth purchasing 12.5 million shares of Verde's Class A common stock at $4.00 per share. Funds from this investment will be allocated towards developing and constructing natural gas-to-gasoline production plants using Verde's patented STG+ process, as well as servicing other general corporate needs. The natural gas feedstock for these plants will be sourced from Diamondback's operations in the Permian Basin.
Sectors
- Energy
- Cleantech
- Finance
Geography
- United States – Both Verde Clean Fuels and Diamondback Energy, along with its subsidiary, Cottonmouth Ventures, are based in the USA, and the natural gas feedstock will come from the Permian Basin located in the United States.
Industry
- Energy – The investment involves companies engaged in the energy sector, specifically focusing on the innovative conversion of natural gas to gasoline.
- Cleantech – Verde Clean Fuels is involved in clean technology solutions with their patented method for converting natural gas into cleaner gasoline.
- Finance – The article discusses a significant financial transaction between investment entities participating in the energy sector.
Financials
- $50 million – The funding amount from Cottonmouth Ventures to Verde Clean Fuels for equity investment.
- 12.5 million shares at $4.00 per share – Breakdown of the equity purchase by Cottonmouth Ventures.
- $70 million – Total investment by Cottonmouth Ventures in Verde Clean Fuels over two years.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Verde Clean Fuels, Inc. | Target Company | Company | A company specializing in converting natural gas to gasoline leveraging its patented STG+ process. |
| Cottonmouth Ventures, LLC | Bidding Company | Company | A wholly-owned subsidiary of Diamondback Energy, Inc., responsible for the investment in Verde Clean Fuels. |
| Diamondback Energy, Inc. | Other Company | Company | Parent company of Cottonmouth Ventures and provider of natural gas feedstock from its operations in the Permian Basin. |