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MIDLAND, Texas - New Era Helium, Inc. (NASDAQ:NEHC), currently trading at $0.49 with a market capitalization of $7.15 million, announced Thursday that its joint venture with Sharon AI, Texas Critical Data Centers (TCDC), is in discussions with large enterprise customers to anchor its planned artificial intelligence infrastructure development in Ector County, Texas. According to InvestingPro data, the company faces significant financial challenges with a weak overall health score.
While no formal agreements have been signed, the company is pursuing additional land near the current site to potentially expand the data center campus. The expansion aims to connect local energy resources in the Permian Basin with growing demand for AI computing power. With current revenue of $0.53 million in the last twelve months and a concerning current ratio of 0.51, InvestingPro analysis indicates the company may face challenges funding its expansion plans.
The company also stated it has identified three new board candidates with expertise in energy, infrastructure, and digital innovation. These appointments are in the final due diligence stage and are expected to support the company’s governance and growth strategy. The appointments come as the company’s stock has experienced a significant decline, falling 95.51% over the past year.
"Our vision is to power the next era of AI infrastructure from the heart of America’s energy backyard, the Permian Basin," said E. Will Gray II, CEO of New Era Helium, according to the press release.
New Era Helium controls over 137,000 acres in Southeast New Mexico with more than 1.5 Bcf of proved and probable helium reserves that are extracted alongside natural gas production.
The announcement comes as the company seeks to position itself at the intersection of energy resources and data infrastructure development, based on information provided in the company’s statement.
In other recent news, New Era Helium Inc. has announced a partnership with PowerForward Energy Solutions to provide 250 megawatts of generation capacity for a high-performance computing campus in Texas. This collaboration aims to support the growing demand for AI and cloud computing infrastructure, with the initial 100MW expected to be delivered within 12 months following funding. Meanwhile, the company faces a potential delisting from the Nasdaq due to non-compliance with the minimum Market Value of Publicly Held Shares and Minimum Bid Price Requirement, with a 180-day period to regain compliance. Additionally, New Era Helium has amended its equity purchase agreement, allowing for the deferral of principal payments on promissory notes while removing restrictions on selling shares below a certain price. The construction timeline for its Pecos Slope Plant has been extended, with operations now expected in Q4 2025 due to financing challenges. Amidst these developments, the company has seen board member resignations, with Phil Kornbluth and Stan Boroweic stepping down, although this will not impact its operations. The company is actively seeking replacements for these board positions to ensure governance continuity. New Era Helium continues to explore strategic financial moves and joint ventures to support its expansion into data infrastructure and natural gas.
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