NextNRG Executes Term Sheet to Acquire 33-Acre Indiana Site for Lone Wolf Energy Center, With Potential to Support Up to 70 MW of Data Center Capacity

A pharmaceutical tenant has signed a binding lease, but its effectiveness depends on NextNRG acquiring the property.

Rhea-AI Summary

NextNRG (Nasdaq: NXXT) signed a non-binding term sheet for a proposed $22 million South Bend property acquisition for Lone Wolf Energy Center.

The approximately 33-acre purchase from Envision South Bend would comprise $500,000 cash, $10 million in newly designated preferred stock and $11.5 million debt. NextNRG plans energy infrastructure and data center development on approximately 27 acres, with potential for up to 70 MW of data center capacity, and potentially up to 100 MW. It expects a separate partner to handle AI computing operations.

A binding 10-year pharmaceutical tenant lease for the existing approximately 50,000-square-foot building takes effect only upon acquisition. Annual rent is the greater of $250,000 minimum rent, escalating 3% annually, or 10% of tenant Net Premises Revenue, subject to a $2.5 million annual cap. The purchase requires definitive documents, approvals, seller lender approval and an applicable Nasdaq listing condition.

6 points · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 6 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate point. Forward-looking: it has not happened yet and may not happen.Proposed $22 million acquisition would secure approximately 33 acres from Envision South Bend for Lone Wolf Energy Center. 5.2× market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Approximately 27 acres are planned for energy infrastructure and data centers, potentially supporting up to 70 MW, potentially 100 MW.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Binding 10-year lease secures a pharmaceutical tenant for the existing approximately 50,000-square-foot building, effective upon acquisition.
• Minor point. Forward-looking: it has not happened yet and may not happen.Annual rent is greater of $250,000 minimum, escalating 3% annually, or 10% of Net Premises Revenue; $2.5 million annual cap.
• Minor point. Forward-looking: it has not happened yet and may not happen.Net lease assigns the tenant its proportionate property taxes, building insurance and common operating costs.
• Minor point. Forward-looking: it has not happened yet and may not happen.Rooftop solar rights remain with NextNRG under the lease.

Negative

• Moderate pointNon-binding acquisition requires definitive documents, corporate and other approvals, seller lender approval and the applicable Nasdaq listing condition.
• Moderate point. Forward-looking: it has not happened yet and may not happen.AI computing infrastructure and operations are expected to depend on a separate specialized partner.
• Minor point. Forward-looking: it has not happened yet and may not happen.Proposed consideration includes $11.5 million in debt.
• Minor point. Forward-looking: it has not happened yet and may not happen.Newly designated preferred stock would account for $10 million of the proposed purchase consideration.
• Minor point. Forward-looking: it has not happened yet and may not happen.Cash consideration would require $500,000 for the proposed acquisition.
• Minor pointLease effectiveness depends on NextNRG or its designated acquisition subsidiary acquiring the property.

News Explained

The lease also requires the tenant to pay its proportionate share of property taxes, building insurance and common operating costs, adding a specified expense-sharing arrangement to the disclosed rent terms.

Key Figures

Proposed acquisition price: $22 million Cash consideration: $500,000 Preferred Stock consideration: $10 million +5 more

Proposed acquisition price

$22 million

Non-binding term sheet

Cash consideration

$500,000

Proposed acquisition consideration

Preferred Stock consideration

$10 million

Newly designated class; proposed acquisition consideration

Debt consideration

$11.5 million

Proposed acquisition consideration

Potential data center capacity

Up to 70 MW; potentially up to 100 MW

Planned development at the Lone Wolf Energy Center

Initial lease term

10 years

Binding lease; effective upon acquisition of the property

Lease renewal options

Two additional 10-year options

At the tenant's election

Annual rent structure

Greater of $250,000 minimum rent, escalating 3% annually, or 10% of Net Premises Revenue; $2.5 million annual cap

Lease terms

Key Terms

term sheet, preferred stock, microgrid, net lease

4 terms

term sheet financial

"executed a non-binding term sheet with Envision South Bend LLC"

A term sheet is a short, non-binding summary of the main points agreed between parties before a formal investment, loan, or acquisition is completed. Think of it as a blueprint that lists price, ownership split, key rights and conditions, and timelines so everyone knows the deal’s structure before lawyers draft final contracts. Investors care because it signals the likely economic terms, risks, and protections they will get and can make or break whether a transaction proceeds.

preferred stock financial

"$10 million in a newly designated class of Preferred Stock"

Preferred stock is a type of ownership in a company that typically offers investors higher and more consistent dividend payments than common stock. Unlike regular shares, preferred stock usually doesn’t come with voting rights but provides a priority claim on the company’s assets and profits, making it a more stable and predictable investment option. This makes preferred stock attractive to those seeking steady income with lower risk.

microgrid technical

"data center infrastructure, on-site power generation, battery storage and microgrid capabilities"

A microgrid is a small, local electricity system that combines power sources (like solar panels, small generators) and storage (batteries) with controls so it can run either connected to the main utility grid or on its own during outages. For investors, microgrids matter because they reduce outage risk, can lower energy costs, enable new revenue streams (selling excess power or grid services), and reflect growing demand for resilient, decentralized energy infrastructure.

net lease financial

"Under the net lease structure, the tenant will also pay its proportionate share"

A net lease is a real estate lease in which the tenant pays some or all property expenses—such as taxes, insurance and maintenance—in addition to base rent, so the landlord receives a steadier stream of income with fewer variable costs. For investors, net leases can behave like a bond: they offer predictable, long-term cash flow and lower property-management risk, but the investor still faces vacancy, credit and market-value risks.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Pharmaceutical company to lease the site's existing 50,000-square-foot building, with the remaining 27 acres planned for on-site power generation, battery storage, intelligent energy management and distributed AI computing infrastructure

MIAMI, FL, Nov. 05, 2026 (GLOBE NEWSWIRE) -- NextNRG, Inc. (Nasdaq: NXXT) ("NextNRG" or the "Company"), a pioneer in AI-driven energy innovation transforming how energy is produced, managed, and delivered, today announced that it has executed a non-binding term sheet with Envision South Bend LLC to acquire an approximately 33-acre property in South Bend, Indiana. The Company has also executed a binding 10-year lease agreement with a pharmaceutical company for the property's existing approximately 50,000-square-foot building. The lease will become effective upon the Company's acquisition of the property.

NextNRG plans to develop the property as the Lone Wolf Energy Center, combining a commercial tenant in the existing building with a separate development area for data center infrastructure, on-site power generation, battery storage and microgrid capabilities.

Energy and Data Center Development

NextNRG plans to develop approximately 27 acres of the property for data center infrastructure and supporting energy systems, with the potential to support up to 70 megawatts of data center capacity, and potentially up to 100 megawatts. A transmission line running along the property boundary also presents a pathway for future grid interconnection.

The Company plans to pursue right-sized AI infrastructure and distributed computing applications, offering an alternative to traditional hyperscale data center campuses. The ability to develop on-site generation could provide a pathway to power availability for prospective customers while longer-term grid interconnection opportunities are pursued.

The remaining acreage also provides an opportunity to integrate battery energy storage and microgrid infrastructure, coordinating power generation, storage and energy management to support the needs of data center operators and other prospective commercial and industrial customers.

NextNRG's role in the development will focus on the energy infrastructure, including power generation, battery storage, microgrid systems, and energy management. The Company expects to work with a separate specialized partner responsible for the AI computing infrastructure and related operations. This approach allows NextNRG to apply its energy technology and capabilities to support the facility without taking on the role of data center compute operator.

"We believe data center development must evolve to meet today's energy and infrastructure challenges. With the potential to support approximately 70 megawatts, Lone Wolf represents an opportunity to develop at a scale that can support meaningful data center operations without the footprint and resource demands of traditional hyperscale campuses" said Michael D. Farkas, Founder and Chief Executive Officer of NextNRG. "By integrating on-site generation, battery storage and intelligent energy management, we can plan around the facility's power needs while working to minimize additional strain on the local grid and surrounding community. We also see an opportunity to bring new investment, jobs, and tax revenue to South Bend. Our goal is to demonstrate how energy infrastructure and data center development can work together to benefit both the community and the businesses they support."

Transaction Details

Under the terms of the non-binding term sheet, the proposed $22 million acquisition consists of $500,000 in cash, $10 million in a newly designated class of Preferred Stock and $11.5 million in debt. 

Anchor Tenant

The existing approximately 50,000-square-foot building will be leased to a pharmaceutical company for manufacturing, laboratory, warehousing and office operations. The binding lease agreement provides for an initial 10-year term, with two additional 10-year renewal options at the tenant's election.

Annual rent will equal the greater of minimum rent of $250,000, escalating 3% annually, or 10% of the tenant's Net Premises Revenue, subject to a $2.5 million annual cap. Under the net lease structure, the tenant will also pay its proportionate share of property taxes, building insurance and common operating costs.

The lease provides NextNRG with an established commercial use for the existing building while retaining the remaining approximately 27 acres for independent development and commercialization opportunities. NextNRG will also retain the right to use the building's rooftop for solar installations.

Proposed Transaction Conditions

The proposed acquisition remains subject to the negotiation and execution of definitive transaction documents, required corporate and other approvals, seller lender approval, and the applicable Nasdaq listing condition. The lease is binding upon execution but becomes effective only upon NextNRG or its designated acquisition subsidiary acquiring the property.

There can be no assurance that the proposed acquisition will be completed on the terms contemplated or at all.

About NextNRG, Inc.

NextNRG, Inc. (NextNRG) is Powering What’s Next by deploying its AI-driven Smart Controller, a proprietary AI technology that continuously optimizes how energy is generated, stored, and consumed. The Company deploys the controller within microgrids at commercial, healthcare, municipal, industrial and federal sites, and at a utility scale through the Next Utility Operating System®.

NextNRG also sells EV chargers, is advancing wireless in-motion charging, and operates one of the nation’s largest on-demand mobile fueling fleets through EzFill.

To learn more, visit www.nextnrg.com.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement describing NextNRG’s goals, expectations, financial or other projections, intentions, or beliefs is a forward-looking statement and should be considered an at-risk statement. Words such as “potential,” “plans,” “believes,” “expect,” “intends,” “will,” and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, including, but not limited to, the Company’s ability to negotiate and execute definitive agreements for the acquisition of the Lone Wolf property on the terms described or at all, the outcome of the Company’s previously disclosed Nasdaq hearing and the Company’s ability to regain and maintain compliance with Nasdaq’s continued listing requirements; and risks related to NextNRG’s business and macroeconomic and geopolitical events. These and other risks are described in NextNRG’s filings with the Securities and Exchange Commission from time to time.NextNRG’s forward-looking statements involve assumptions that, if they never materialize or prove correct, could cause its results to differ materially from those expressed or implied by NextNRG. Although NextNRG’s forward-looking statements reflect the good faith judgment of NextNRG, these statements are based only on facts and factors currently known by NextNRG. Except as required by law, NextNRG undertakes no obligation to update these forward-looking statements for any reason. As a result, you are cautioned not to rely on these forward-looking statements.

Investor Relations Contact
NextNRG, Inc.
Sharon Cohen
SCohen@nextnrg.com

Media Contact
HCM for NextNRG
nextnrg@hannahcranstonmedia.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What are the terms of NextNRG's proposed Lone Wolf Energy Center acquisition?

NextNRG's non-binding $22 million proposal covers approximately 33 acres in South Bend, Indiana, owned by Envision South Bend. Consideration consists of $500,000 cash, $10 million in newly designated preferred stock and $11.5 million debt. Completion remains subject to definitive documents, required approvals, seller lender approval and the applicable Nasdaq listing condition.

How much data center capacity could NextNRG's Lone Wolf Energy Center support?

NextNRG identifies potential for up to 70 megawatts of data center capacity, and potentially up to 100 megawatts. The company plans to develop approximately 27 acres for data center infrastructure and supporting energy systems; these capacities are potential, not operating capacity.

Can the pharmaceutical tenant renew its lease at NextNRG's Lone Wolf Energy Center?

The pharmaceutical tenant has two additional 10-year renewal options at its election after the initial 10-year term. Its planned uses of the building include manufacturing, laboratory, warehousing and office operations.

How does NextNRG plan to supply power to Lone Wolf Energy Center?

NextNRG plans on-site power generation, battery storage and microgrid infrastructure, with energy management coordinating those systems. A transmission line along the property boundary presents a pathway for future grid interconnection. The company sees on-site generation as a potential route to power availability while pursuing longer-term grid interconnection opportunities.