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Business complications for SMR companies X-energy and NuScale – 6 November last day of trading in public shares

NEI Magazine, 3 November 2023

US-based X-Energy Reactor Company and publicly-traded special purpose acquisition company Ares Acquisition Corporation (AAC), have mutually agreed to terminate their previously announced business combination agreement with immediate effect. …….  X-energy and AAC agreed not to proceed with the transaction citing “challenging market conditions, peer-company trading performance and a balancing of the benefits and drawbacks”.

……………………………………….Neither party is required to pay the other a termination fee as a result of the mutual decision to terminate the agreement. AAC determined that it will not be able to consummate an initial business combination within the time period required by its amended and restated memorandum and articles of association and intends to dissolve and liquidate. AAC anticipates that the last day of trading in the public shares will be 6 November…………………….

 NuScale is also facing difficulties after a lengthy report by Iceberg Research entitled “Nuscale Power ($SMR): A fake customer and a major contract in peril cast doubt on NuScale’s viability”. Iceberg alleged that NuScale had sold 24 reactors to a “fake customer”. This referenced a deal NuScale announced in October to supply Standard Power with 1,848 MWe of power provided by 24 SMRs to power two US data centre sites. Iceberg predicts Standard Power will be unable to support the contract. 

……………………………….. The Standard Power deal is bigger than NuScale’s other contract, with the government-backed Carbon Free Power Project (CFPP) to provide Utah Associated Municipal Power Systems (UAMPS) with 462 MWe. Iceberg said NuScale has “around 15 months before its cash runs out” and that the UAMPS contract is reaching a crucial stage. Overall shares in NuScale have fallen around 75% since their peak in late 2022, from around $14 to around $3.5……………………………………………………………………………… https://www.neimagazine.com/news/newsbusiness-complications-for-smr-companies-x-energy-and-nuscale-11268599. #nuclear #antinuclear #nuclearfree #NoNukes #smr

November 6, 2023 - Posted by Christina Macpherson | business and costs, Small Modular Nuclear Reactors, USA