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HOUSTON - XCF Global, Inc. (NASDAQ:SAFX), a $125.66 million market cap company whose shares have declined over 82% year-to-date, announced Monday it has signed an exclusive, non-binding Indication of Intent to acquire a renewable fuels infrastructure and feedstock solutions company based in the western United States. The stock currently trades at $1.80, near its 52-week low of $1.42.
Under the proposed transaction, XCF would acquire 100% of the unnamed target company by issuing shares of its Class A Common Stock and assuming certain debt obligations. The final valuation remains subject to confirmatory due diligence. According to InvestingPro data, XCF maintains a relatively low debt profile with a total debt-to-capital ratio of just 0.01, potentially providing flexibility for this acquisition.
The potential acquisition would expand XCF’s infrastructure and logistics capabilities, adding feedstock processing facilities, blending operations, and access to maritime port infrastructure. The assets would provide XCF with deeper access to California’s low-carbon fuel markets and international airports across the state.
"This IOI signals continued execution of our growth strategy to build a fully integrated, Nasdaq-listed SAF and renewable fuels platform," said Mihir Dange, Chief Executive Officer and Board Chair of XCF Global, in the press release statement.
The transaction, if completed, would support XCF’s vertical integration strategy by potentially reducing production costs and improving margins. The company expects the addition would be accretive to its combined post-transaction equity valuation.
The IOI establishes a 20-business day exclusive negotiation period for the parties to complete due diligence and negotiate terms. Definitive agreements are expected in the coming months, though the company noted there is no guarantee the transaction will be completed.
XCF Global develops synthetic aviation fuel (SAF) facilities aimed at helping the aviation industry reduce emissions. The company recently signed a Memorandum of Understanding to expand into Australia and is exploring other international development opportunities. Investors should note that XCF’s next earnings report is scheduled for August 12, which may provide additional clarity on the acquisition timeline. InvestingPro subscribers have access to dozens more metrics and analysis tools to evaluate potential merger impacts on company valuations.
In other recent news, XCF Global Inc. announced a significant investment plan to expand its Synthetic Aviation Fuel (SAF) production capacity. The company plans to invest nearly $1 billion to develop a network of SAF production facilities across the United States and internationally. This expansion aims to increase production capacity to approximately 160 million gallons per year by 2028, with three additional U.S. production sites already acquired. Additionally, XCF Global has amended agreements with Helena Global Investment Opportunities I Ltd and Randall Soule, waiving the return of certain shares for a cash payment of approximately $2.25 million. The company also highlighted its reliance on domestically sourced feedstocks for renewable fuel production, supporting American farmers and rural economies. In a strategic move, XCF Global partnered with Urvin Finance to launch a verified shareholder community platform, providing authenticated shareholders access to company updates. Furthermore, XCF Global appointed Camarco as its capital markets communications adviser to enhance engagement with the investment community. These developments reflect the company’s ongoing efforts to strengthen its market position and investor relations.
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