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NuScale Power completes warrant redemption, raises $227.7 million

Published 12/26/2024, 04:21 PM
SMR
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CORVALLIS, Ore. - NuScale Power Corporation (NYSE: SMR), a company specializing in advanced nuclear small modular reactor (SMR) technology, has finalized the redemption of all its outstanding warrants for purchasing company common stock. As of last Thursday, holders of approximately 97% of the outstanding warrants exercised their rights, resulting in the issuance of 19.8 million shares of Class A Common Stock at $11.50 per share. This transaction has provided NuScale with $227.7 million in cash proceeds. According to InvestingPro data, NuScale maintains a healthy financial position with a current ratio of 2.24, indicating strong liquidity. The company's stock has shown remarkable performance, delivering a 538% return year-to-date.

The redemption process concluded with the remaining unexercised warrants being redeemed for $0.01 per warrant after the close of business on the redemption date. Consequently, no warrants remain outstanding, and they have ceased trading on the New York Stock Exchange. With a market capitalization of $2.12 billion, NuScale's financial metrics and detailed analysis are available through InvestingPro's comprehensive research reports, which cover over 1,400 US stocks.

NuScale Power, founded in 2007, is recognized for its proprietary SMR technology, which includes the NuScale Power Module™. This technology is notable for its flexibility, allowing for configurations that can meet a range of customer needs. The company's SMR design is the first and only to receive certification from the U.S. Nuclear Regulatory Commission, positioning NuScale as a potential key player in providing carbon-free energy solutions for various applications, including electricity generation, district heating, and hydrogen production. While analysts expect revenue challenges in the near term, InvestingPro analysis reveals the company maintains more cash than debt on its balance sheet, supporting its growth initiatives.

The completion of the warrant redemption marks a significant financial milestone for NuScale, as it bolsters the company's capital and supports its ongoing efforts to deploy its SMR technology globally. The company's progress is being closely watched by the industry, as it represents a potential advancement in safe and scalable nuclear energy solutions. Despite current profitability challenges, the company's strong liquidity position and technological leadership continue to attract investor attention.

The information in this article is based on a press release statement from NuScale Power Corporation.

In other recent news, NuScale Power Corporation has reported significant progress in the clean energy sector, with a focus on its unique small modular reactor (SMR) technology. The company's recent earnings reveal a cash position of $161.7 million and a reduction in operating expenses from $93.9 million to $41.2 million year-over-year. Despite a net loss of $45.5 million, this marked an improvement from the previous year's loss of $58.3 million.

NuScale has also secured a significant supply deal with Doosan Enerbility Co., Ltd. for reactor components, marking a pivotal step towards manufacturing its SMRs. This agreement is a part of NuScale's strategy to solidify its supply chain for the deployment of its SMR technology.

Furthermore, collaborations with ENTRA1 Energy and a $20 million customer deposit from RoPower have been announced. A power upgrade application for the SMR design is expected to be concluded by mid-2025. These are recent developments that underline NuScale's strategic position in the growing clean energy market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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