SPAC HCM II Acquisition rises on Terrestrial Energy merger news

Published 26/03/2025, 15:52
© Reuters.

Investing.com -- Shares of blank check company HCM II Acquisition Corp. (NASDAQ:HOND) climbed 7.4% today following the announcement of a business combination with Terrestrial Energy, which will make the latter the first publicly traded molten salt nuclear reactor developer.

The merger is expected to generate approximately $280 million in gross proceeds, which will be used to accelerate the commercial deployment of Terrestrial Energy’s Integral Molten Salt Reactor (IMSR) technology. The transaction values Terrestrial Energy at a pre-money equity value of $925 million, with a pro forma enterprise value of the new public company estimated at $1 billion and a pro forma equity value of about $1.3 billion.

The IMSR technology promises to supply zero-carbon, clean, firm, and low-cost high-temperature industrial heat and electricity. The design is expected to be more affordable, efficient, and versatile than traditional nuclear power plants, catering to a wide range of industrial applications. Terrestrial Energy has already secured partnerships with notable organizations and has achieved significant regulatory milestones, including the completion of the Canadian Nuclear Safety Commission’s Vendor Design Review.

The business combination is anticipated to close in the fourth quarter of 2025, with the combined entity applying for listing on Nasdaq under the ticker symbol "IMSR". The deal has been unanimously approved by the Boards of Directors of both companies and is subject to customary closing conditions.

Terrestrial Energy’s leadership, including CEO Simon Irish, will continue to head the company post-merger, with all existing shareholders rolling their equity holdings into the new public entity. The company has also secured commitments for customary lock-ups from its management team and primary shareholders.

The announcement has been positively received by the market, reflecting confidence in the potential of Terrestrial Energy’s innovative nuclear technology and its ability to meet the growing demand for clean and reliable energy.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.