Canada’s Greenfire Sources to listing in U.S. by way of $780 million SPAC deal

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(Provides particulars about itemizing plan)

Dec 15 (Reuters) –

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Canada’s Greenfire Sources Inc plans to listing in the USA by merging with blank-check agency M3-Brigade Acquisition III Corp in a deal that values the mixed firm at $780 million, they stated on Thursday.

Greenfire plans to develop into the guardian firm after the deal closes within the second half of subsequent yr, with the vitality agency’s shareholders proudly owning practically 81% of the mixed firm.

The low-cost oil sands producer explores, acquires, develops and produces oil and fuel in Canada. The transaction values it at $950 million, together with debt.

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Greenfire joins a number of different vitality firms in pushing forward with itemizing plans at a time when the broader SPAC market has been on a downtrend.

Durham, North Carolina-based NET Energy stated on Wednesday it plans to merge with a blank-check agency backed by vitality business veteran Daniel Rice in a deal valued at $1.46 billion, together with debt.

A report variety of firms opted for particular objective acquisition firms over conventional preliminary public choices since final yr. However regulatory issues and heightened scrutiny appears to have cooled down Wall Road’s hottest funding development, with majority of SPACs buying and selling beneath their providing costs.

A SPAC, often known as a blank-check agency, raises cash in an IPO for the aim of merging with a non-public firm and taking it public. (Reporting by Mehnaz Yasmin in Bengaluru; Enhancing by Maju Samuel)