XCF Global Capital has agreed to go public via a merger with special purpose acquisition company (SPAC) Focus Impact BH3 Acquisition, in a deal that values the sustainable fuels producer at $1.75 billion, the SPAC said on Friday.
New York-based XCF Global, which owns multiple facilities in North America, produces renewable diesel and has planned a strategic expansion into sustainable aviation fuel and other biofuels.
SPACs have largely fallen out of favor following a frenzy of deals in 2020 that invited intense scrutiny from the U.S. securities regulator. But smaller private companies still prefer mergers with SPACs, since this lets them sidestep a lengthy initial public offering (IPO) process.
Last week, Powermers Smart Industries, a commercial transportation and industrial equipment maker focused on reducing greenhouse gas emissions, also agreed to go public in a SPAC deal valued at around $2 billion.
Also called blank-check firms, SPACs use proceeds from their IPOs to merge with private firms.
