Heliogen to go public via USD-2bn blank-check merger

Heliogen, a California-based developer of artificial intelligence (AI)-enabled concentrated solar technology, is set to go public via a merger with special purpose acquisition company (SPAC) Athena Technology Acquisition Corp (NYSE:ATHN).

The parties announced today they have agreed to combine, with Athena to remain listed on the New York Stock Exchange and to be renamed Heliogen Inc, trading under the new ticker symbol “HLGN”.

According to the announcement, the deal implies a pro forma enterprise value of the combined business of USD 2 billion (EUR 1.7bn). As a result of the transaction, the merged company is expected to obtain USD 415 million in gross proceeds, including investor commitments to buy USD 165 million in stock through a private investment in public equity (PIPE). The latter is anchored by existing and new investors including funds and accounts managed by Counterpoint Global (Morgan Stanley), Salient Partners, Saba Capital and the XCarb Innovation Fund of ArcelorMittal, the companies said.

The proceeds are planned to be used to scale heliostat manufacturing, to aid research and development (R&D) efforts and global project development, and to fund the balance sheet.

The technology of Bill Gates-backed Heliogen concentrates the sun’s rays into heat with temperatures exceeding 1,000 degrees C that can be used in industry, for power generation, or for the production of hydrogen fuel. The aim is to provide renewable energy with nearly no intermittency.

The deal, expected to complete in the fourth quarter of 2021, comes as Heliogen is starting to commercialise the technology with customers in the industrial, mining, and energy sectors.

(USD 1.0 = EUR 0.844)

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