Suntuity Renewables, a provider of renewable energy solutions, and Beard Energy Transition Acquisition Corp., a special purpose acquisition company, have entered into an agreement to become a combined, publicly traded company.
After the transaction closes, the combined company will be named Suntuity Inc. (New Suntuity), and its Class A common stock and warrants are expected to be listed on the New York Stock Exchange under the new ticker symbols STY and STY.WS, respectively.
Suntuity, one of the larger end-to-end residential solar companies in the U.S., counts more than 9,500 residential systems installations across 25 states.
Since the company began its residential solar expansion in 2017, it has originated opportunities representing more than 200 MW and expanded its capabilities to include providing electrification solutions, installing power generation and storage systems, and arranging third-party financing solutions for residential customers.
Suntuity has a substantial share of the residential solar market, with a 26.7% install CAGR over the past three years and a robust $55 million backlog including over 1,100 projects.
“In taking this next step to become a publicly traded company, we intend to accelerate our growth, broaden our focus to include comprehensive home electrification solutions and services across the country and establish ourselves as a significant industry participant in the renewable energy transformation,” says Dan Javan, president and CEO of Suntuity.
Gregory A. Beard, CEO of Beard, notes: “When searching for a potential partner in this transaction, we sought to identify a high-growth business in the renewable energy space with a clear path to scalability and a public-ready management team; we believe Suntuity satisfies each of these criteria and much more.”
Pursuant to the business combination agreement, Beard will acquire Suntuity for a pre-money equity value of $190 million. The combined company, New Suntuity, will issue 19 million new shares to current members of Suntuity.
Existing Suntuity members will exchange 100% of their equity interests in Suntuity for equity in New Suntuity. Cash proceeds will consist of cash from Beard’s trust account after redemptions by Beard’s public stockholders. Suntuity has also already raised $15 million in funded debt financing.
The business combination has been unanimously approved by the boards of directors of both companies and is expected to close in the fourth quarter of 2023.
Upon closing of the transaction, Suntuity’s senior management will continue to serve in their existing roles. Current Suntuity members are expected to own approximately 40% of the combined company at close of the transaction, assuming no redemptions by Beard’s public stockholders.
Vinson & Elkins LLP is serving as legal advisor to Beard. Roth Capital Partners is serving as capital markets advisor, and Loeb & Loeb LLP is serving as legal advisor to Suntuity.
The post Suntuity Renewables to Combine with Beard Energy and Go Public appeared first on Solar Industry.
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Author: Valerie Swiantek