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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.
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