HCM II Acquisition Corp. (HOND) said Wednesday it will merge with Terrestrial Energy, a developer of small modular nuclear power plants.
Under the terms of the merger, the combined company will receive $50 million through a PIPE transaction of 5 million common shares priced at $10 per share, in addition to the $230 million in cash the blank-check company brings to the deal.
Those proceeds will be used to accelerate the deployment of Terrestrial's ISMR nuclear reactor technology among its prospective customers.
The new company, which will retain the Terrestrial Energy name and trade under the "ISMR" ticker symbol following the upcoming business combination, is expected to be valued at about $1.3 billion prior to completion of the upcoming PIPE transactions, HCM II said.
The pre-transaction Terrestrial Energy last month disclosed plans to build an on-campus ISMR generator for Texas A&M University. The reactors also were designed to replace existing turbines and generators inside existing or retired coal-fired electric plants, the company has said.
HCM II Acquisition shares recently were nearly 6% higher in mid-morning trading on Wednesday.
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