Oil Sands Producer Greenfire Resources to Go Public with SPAC M3-Brigade in $950M Deal
Special purpose acquisition company (SPAC) M3-Brigade Acquisition III Corp and Canadian energy company Greenfire Resources will merge in a deal that values Greenfire at a $950mn enterprise value, including debt of $170mn. The post-money equity value of the combined company is expected to be $780mn.
Greenfire shareholders will own approximately 81% of the company.
The deal is expected to close in the second quarter of 2023 and the Calgary-based company plans to list in the US on the NYSE. The newly created Alberta corporation Greenfire Resources Ltd. will become the parent of both Greenfire and M3-Brigade. Greenfire Resources Ltd. is expected to continue to be managed by Greenfire’s current executive team.
Greenfire is the latest energy company to enter a SPAC deal despite the broader market being in a downtrend.
Earlier this week, Rice Acquisition Corp. II (RAC II), a SPAC led by current director of RAC II and former Rice Energy Inc. CEO Danny Rice, and NET Power, whose technology is designed to reduce carbon emissions from natural gas, announced a merger valued at $1.459bn.
