CO2 Energy Transition Corp. Announces Pricing of $60 Million Initial Public Offering

Rhea-AI Summary

CO2 Energy Transition Corp. has announced the pricing of its $60 million initial public offering, consisting of 6,000,000 units at $10.00 per unit. Each unit includes one common stock share, one redeemable warrant (exercisable at $11.50), and one right for one-eighth of a share upon business combination completion. The company granted a 45-day over-allotment option for 900,000 additional units. Trading will begin on Nasdaq under symbol NOEMU on November 21, 2024, with individual components later trading as NOEM, NOEMW, and NOEMR. The offering, underwritten by Kingswood Capital Partners , is expected to close on November 22, 2024.

Positive

• Successful IPO pricing at $10.00 per unit
• Total offering size of $60 million
• Listing on major exchange (Nasdaq Global Market)
• Additional potential capital through 900,000 unit over-allotment option

Negative

• Blank check company with no current operating business
• Warrant exercise price ($11.50) represents 15% premium to IPO price
• Shareholder dilution through rights conversion

Insights

Financial Analyst

This SPAC IPO signals a strategic move in the energy transition sector, raising $60 million with potential for an additional $9 million through over-allotment. The unit structure, priced at $10.00, offers investors a compelling package with common stock, warrants at $11.50 and rights for fractional shares. While SPACs have faced challenges recently, the energy transition focus could attract investors seeking exposure to clean energy and decarbonization opportunities.

The warrant exercise price at $11.50 represents a 15% premium to the unit price, suggesting optimistic expectations for future value creation. The inclusion of rights (1/8 share per right) provides additional upside potential for early investors. However, investors should note the typical SPAC risks, including the 24-month timeline to complete a business combination and potential dilution from warrant exercises.

Houston, TX, Nov. 20, 2024 (GLOBE NEWSWIRE) -- CO2 Energy Transition Corp. (the “Company”), a blank check company incorporated as a Delaware corporation today announced the pricing of its initial public offering of 6,000,000 units at an offering price of $10.00 per unit, with each unit consisting of one share of common stock of the Company, one redeemable warrant which will entitle the holder thereof to purchase one share of common stock at $11.50 per share and one right with each right entitling the holder to one-eighth of one share of common stock upon completion of an initial business combination. The Company has granted the underwriter a 45-day option to purchase up to 900,000 additional units at $10.00 per unit to cover over-allotments, if any. The units are expected to trade on the Nasdaq Global Market (“Nasdaq”) under the ticker symbol “NOEMU” beginning November 21, 2024. Once the securities comprising the units begin separate trading, the common stock, the warrants and the rights are expected to be traded on Nasdaq under the symbols “NOEM,” “NOEMW” and “NOEMR” respectively. The offering is expected to close on November 22, 2024, subject to customary closing conditions.

Kingswood Capital Partners LLC is acting as sole underwriter of this offering. 

A registration statement relating to the securities sold in the initial public offering was declared effective by the U.S. Securities and Exchange Commission (the “SEC”). The offering is being made only by means of a prospectus. When available, copies of the prospectus relating to this offering may be obtained from Kingswood Capital Partners LLC, 126 East 56th Street, Suite 22S, New York, NY 10022, Attn: Syndicate, or by email at syndicate@kingswoodus.com, or by accessing the SEC’s website, www.sec.gov.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About CO2 Energy Transition Corp.

CO2 Energy Transition Corp. is a blank check company, also commonly referred to as a special purpose acquisition company, or SPAC, formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities. The Company will not be limited to any particular industry or geographic region, although it initially intends to pursue targets in the carbon capture, utilization and storage industry.

Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the Company’s initial public offering (“IPO”) and search for an initial business combination. No assurance can be given that the offering discussed above will be completed on the terms described, or at all, or that the net proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of CO2 Energy Transition Corp., including those set forth in the Risk Factors section of CO2 Energy Transition Corp.’s registration statement and preliminary prospectus for the IPO filed with the SEC. Copies are available on the SEC's website, www.sec.gov. CO2 Energy Transition Corp. undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Contact Information:

CO2 Energy Transition Corp.
Brady Rodgers
President and Chief Executive Officer
bradyr@co2et.com

FAQ

What is the IPO price for CO2 Energy Transition Corp (NOEMU)?

CO2 Energy Transition Corp's IPO is priced at $10.00 per unit.

When will NOEMU start trading on Nasdaq?

NOEMU is expected to begin trading on Nasdaq Global Market on November 21, 2024.

What does each NOEMU unit consist of?

Each unit consists of one common stock share, one redeemable warrant (exercisable at $11.50), and one right for one-eighth of a share upon business combination completion.

How many units are being offered in the NOEMU IPO?

The IPO consists of 6,000,000 units, with an additional 900,000 units available through the over-allotment option.