GSR III Acquisition stock to begin trading as NKLR after Terra deal approval

Investing.com - GSR III Acquisition Corp. (NASDAQ:GSRT) shareholders have approved the business combination with Terra Innovatum, with shares set to begin trading under the ticker NKLR on Nasdaq. The stock has shown strong momentum, gaining nearly 16% in the past week, according to InvestingPro data.

The company’s cash balances increased to $130 million from $112 million last week, likely due to redemption reversal requests, according to Benchmark, which reiterated a Buy rating and $19.00 price target on the stock. With a current market capitalization of $350 million and analysts setting price targets between $19-20, InvestingPro analysis suggests the stock is currently overvalued at its price of $12.71.

The current cash balance includes $37 million in PIPE proceeds and a $5.5 million bridge loan, with the PIPE priced at $10 per share including partial warrants at $12 and $16 per share.

Terra expects capital needs of $70 million (mid-point) to complete its first reactor, with Benchmark noting the SOLO reactor is advantaged by fuel choice, equipment relationships, and a methodology aligning with IEA standards.

Benchmark expects Terra will gain recognition as a leading entrant in the microreactor space, potentially narrowing the market capitalization gap between microreactors and small modular reactor companies as designs approach commercialization.

In other recent news, Terra Innovatum has signed a memorandum of understanding with the Italian defense engineering center RAIT 88 Srl. This agreement aims to commercialize Terra Innovatum’s SOLO micro-modular reactor for both defense and civilian applications across NATO and allied nations. Meanwhile, GSR III Acquisition Corp., which is in the process of acquiring Terra Innovatum, has received a Buy rating from Roth/MKM, with a price target set at $20.00. Additionally, Benchmark has reiterated its Buy rating on GSR III Acquisition, maintaining a price target of $19.00, citing Terra Innovatum’s MOU with ATB Riva Calzoni as a positive factor. Terra Innovatum has also made progress in its regulatory process for the SOLO Micro-Modular Reactor, with several technical documents now under review by the U.S. Nuclear Regulatory Commission. The company submitted its Regulatory Engagement Plan to the NRC in January 2025, aiming to establish a framework for the non-power reactor licensing pathway. These developments reflect a series of strategic moves by both Terra Innovatum and GSR III Acquisition Corp.

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