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(Bloomberg) — Terra Innovatum, one of several competitors seeking to develop small-scale nuclear power, is set to go public by merging with the blank-check firm GSR III Acquisition Corp.
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The company has a pre-money equity valuation of $475 million in the transaction, according to a statement reviewed by Bloomberg News. The deal will provide Terra Innovatum with up to $230 million in gross proceeds as it seeks US Nuclear Regulatory Commission approval to deploy its reactor design commercially by 2028.
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Terra Innovatum will join a handful of startups — also trying to show small reactors can be viable — that have gone public via special purpose acquisition companies. They include Sam Altman-backed Oklo Inc., Terrestrial Energy Inc., Ares-backed X-Energy and Fluor Corp.-backed NuScale Power.
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“When you look at the performance and the ability to raise capital of the companies so far, there’s a receptivity and frankly an appetite for these stories,” Lewis Silberman, co-chief executive officer of GSR III, said in an interview. Investors understand the “structural deficiency of energy,” he added.
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Still, just a handful of small nuclear reactor projects have been completed, and only in Russia and China. The crucial next step, for Terra and dozens of similar concepts in the pre-application phase, is securing regulatory approval. Terra Innovatum began working with the NRC in January.
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The company’s micro modular reactor design, trademarked by the name SOLO, can deliver about one megawatt of electricity using either standard-grade or more specialized fuel. The reactor is encased in concrete and uses helium gas for cooling, avoiding the risk of hydrogen explosions in water-cooled systems.
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The design can be used for hospitals, data centers, industrial sites and mining operations, among other possibilities, according to Terra Innovatum.
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The transaction is expected to close in the second half of the year, with Terra Innovatum to begin trading on the Nasdaq under the symbol NKLR.
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