DevvStream, Southern Energy Renewables announce business combination

DevvStream (DEVS) and Southern Energy Renewables, a U.S.-based producer of low-cost fuels made from biomass, with a flagship Louisiana project that plans to utilize regional wood-waste biomass to deliver green methanol and carbon-negative sustainable aviation fuel at scale, announced that they have entered into a definitive agreement to combine under a new U.S.-domiciled, Nasdaq-listed company, following customary closing conditions. Upon closing, Southern equity holders are expected to own approximately 70% of the combined company, and DevvStream shareholders approximately 30%. Southern has completed an approximately $2M investment in DevvStream through the acquisition of 128,370 shares at $15.58 per share. To accelerate development, Southern has committed to invest significant pre-closing capital to launch front-end engineering for its first commercial plant. The proposed combination is subject to shareholder approvals, Nasdaq and other regulatory approvals, effectiveness of a Form S-4 registration statement, and other customary closing conditions.