Crown LNG Holding AS Announces Completion of Business Combination with Catcha Investment Corp
Crown LNG Holding AS has finalized its business combination with Catcha Investment Corp, forming Crown LNG Holdings The new entity, trading under Nasdaq tickers 'CGBS' and 'CGBSW' starting July 9, 2024, aims to enhance LNG supplies to weather-challenged markets. The merger was approved by Catcha's board and shareholders. Crown LNG specializes in offshore LNG terminal technologies, focusing on liquefaction and regasification to ensure stable, year-round LNG supplies. Current projects include development in India and Scotland. Management highlights the growth potential and strengthened capital position post-merger.
- Completion of business combination with Catcha Investment Corp.
- Trading on Nasdaq under 'CGBS' and 'CGBSW' starting July 9, 2024.
- Expertise in both LNG liquefaction and regasification.
- Advancing projects in India and Scotland.
- Strengthened capital position post-merger.
- None.
Insights
The completion of Crown LNG's business combination with Catcha Investment Corp and its subsequent listing on Nasdaq under the new ticker symbols “CGBS” and “CGBSW” is significant for current and potential investors. This development provides Crown LNG with enhanced visibility and access to a broader investor base, which should facilitate the raising of additional capital for its ambitious projects in India, Scotland and other markets.
Key Financial Insights:
This move can potentially lead to
Crown’s strategy to secure stable, year-round LNG supplies through its bottom-fixed, gravity-based structures is innovative and offers potential cost advantages over traditional land-based terminals. This approach could attract environmentally conscious investors, given its reduced environmental footprint.
Short-Term vs. Long-Term: In the short term, the listing might lead to increased stock volatility as the market digests the new information and speculations arise about the company's future performance. However, in the long run, the business combination and Nasdaq listing could solidify Crown’s financial position and market presence, making it a potentially attractive investment.
The emergence of Crown LNG as a public company is noteworthy within the context of the evolving energy market. Crown’s focus on providing stable LNG supplies to harsh weather locations addresses a critical need in the global energy infrastructure, especially as energy security becomes a pressing concern.
Market Dynamics:
Crown LNG’s entry into the market with advanced LNG terminal technology highlights its strategic positioning. The ability to operate in environments where other infrastructures might fail could give it a competitive edge. Particularly, Crown’s technology could be pivotal in regions prone to extreme weather, where traditional LNG infrastructures are less effective.
The timing is also favorable given the rising energy security concerns and the role of LNG as a transition fuel. Crown’s capability to provide year-round LNG supplies can support regions shifting from coal to cleaner energy, thereby contributing to global emission reduction targets.
Industry Implications: The successful execution of Crown’s projects in India and Scotland could set a precedent in the industry, showcasing the viability and benefits of bottom-fixed LNG terminals. This could potentially lead to increased adoption of similar technologies across the industry.
Crown LNG’s innovative bottom-fixed, gravity-based structure for LNG terminals offers noteworthy environmental benefits, particularly in reducing the footprint compared to traditional land-based facilities.
Environmental Impact:
The use of offshore terminals where onshore facilities are not feasible minimizes land disruption and the associated environmental impacts. Crown’s projects could thus serve as models for integrating energy infrastructure with environmental stewardship, particularly in ecologically sensitive regions.
Moreover, Crown’s role in facilitating the shift from coal to LNG in growth markets contributes to lower carbon emissions. LNG as a transition fuel is less polluting compared to coal and Crown’s technology ensures reliable supplies even in adverse weather conditions, supporting continuous energy availability.
Long-Term Considerations: From a sustainability perspective, Crown’s approach aligns with global efforts to transition to cleaner energy while balancing the need for stable and secure energy supplies. This could position Crown as a leader in environmentally conscious energy solutions, attracting investment from ESG-focused funds.
- Combination accelerates Crown LNG’s mission to enable stable, secure, year-round LNG supplies to growing markets and locations exposed to harsh weather conditions.
- Crown LNG Holdings Limited shares and warrants to begin trading on the Nasdaq on July 9, 2024 under ticker “CGBS” and “CGBSW,” respectively.
OSLO, NORWAY, July 09, 2024 (GLOBE NEWSWIRE) -- Crown LNG Holding AS (“Crown” or “Crown LNG”), a leading provider of LNG liquefaction and regasification terminal technologies for harsh weather locations, today announced that it has completed its previously announced business combination (the “Business Combination”) with Catcha Investment Corp (“Catcha”).
The transaction was unanimously approved by Catcha’s board of directors and was approved at an extraordinary general meeting of Catcha shareholders on June 12, 2024.
The combined entity will be renamed Crown LNG Holdings Limited (“PubCo” or the “Company”) and, commencing on July 9, 2024, the Class A ordinary shares and warrants of PubCo will trade on the Nasdaq under the new ticker symbols “CGBS” and “CGBSW,” respectively.
Company Background
Founded with a vision to secure stable energy supplies to growth markets exposed to harsh weather conditions, Crown LNG designs and plans to own and operate offshore LNG terminals in locations where onshore facilities are not feasible for reasons such as environmental impact, access for LNG carriers and cost – or where offshore floating terminals are not a preferred solution due to lower availability than a fixed installation such as the gravity based structure (“GBS”) Crown offers.
Crown is active in the two critical parts of the LNG value chain: (1) liquefaction, where natural gas from producers is supercooled to a liquid for transport by ship as LNG, and (2) regasification, where the LNG is turned back into gas and delivered to consumers and businesses as natural gas. With expertise in both areas, Crown has the potential to enable stable, secure, year-round LNG supplies to growing markets and locations exposed to harsh weather conditions. In doing so, the Company aims to expand the global market for LNG (particularly LNG supplied from the U.S.) and contribute to lower carbon emissions in markets it serves by replacing coal with LNG. Crown’s bottom-fixed, gravity based structure design also is expected to ensure lower cost and a reduced environmental footprint versus a comparable land-based LNG terminal alternative.
Currently, Crown is advancing development of two projects toward final investment decision – Kakinada, on the east coast of India, and Grangemouth, in Scotland.
Management Commentary
Swapan Kataria, CEO of Crown LNG, stated, “We are incredibly proud to complete this transaction and become a U.S. listed public company. This transformative step enables the next phase of growth at Crown, and the capital raised in this transaction will further strengthen our ability to execute on our diversified project pipeline in India, the UK, Vietnam, Canada, and other global markets. We look forward to our continued partnership with the Catcha team and delivering value to all of our stakeholders.”
Patrick Grove, CEO of Catcha said, “Crown LNG is a leader in the fast-growing LNG market and as a public company is well-positioned to capitalize on the strong market tailwinds of rising energy security concerns and the increasing use of natural gas as a transition fuel. We look forward to continuing our partnership with Crown, and are confident that the company’s deep industry experience and innovative and proven gravity-based structure technology will enable the company to be a leader in addressing the global demand for LNG.”
Leadership
Crown’s senior management team will continue to lead the now combined company, including Swapan Kataria (Chief Executive Officer) and Jorn S. Husemoen (Chief Financial Officer). Gunnar Knutsen will continue to serve as the President of Crown LNG AS, a wholly-owned subsidiary of Crown LNG Holdings Limited, responsible for technology selection and project execution.
PubCo’s board of directors will be comprised of Swapan Kataria, Jørn S. Husemoen, Ellen Hanetho, Gry Osnes, and Andrew Judson.
Advisors
Cohen & Company Capital Markets, a division of J.V.B. Financial Group, LLC (“CCM”), served as exclusive financial advisor and lead capital markets advisor to Catcha. In partnership with CCM, WestOak Advisors served as energy capital markets advisor to Catcha. Emerging Asia Capital Partners Company Limited (“EACP”) served as financial advisors to Crown. Goodwin Procter LLP served as legal counsel to Catcha. Nelson Mullins Riley & Scarborough LLP served as legal counsel to Crown.
About Crown LNG Holding AS
Crown LNG Holding AS is a leading provider of offshore LNG liquefaction and regasification terminal infrastructure solutions for harsh weather locations, which represent a significant addressable market for bottom-fixed, gravity based (“GBS”) liquefaction and regasification plants, as well as associated green hydrogen, ammonia and power projects. Through this approach, Crown aims to provide lower carbon sources of energy securely to under-served markets across the globe. Visit www.crownlng.com/investors for more information.
About Catcha Investment Corp
Catcha Investment Corp is a blank check company, also commonly referred to as a Special Purpose Acquisition Company, or SPAC, formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities. Catcha is led by Chief Executive Officer Patrick Grove and Chief Financial Officer Wai Kit Wong, and is sponsored by Catcha Holdings LLC, one of the earliest and most established new economy-focused investment groups in Southeast Asia and Australia.
Forward-Looking Statements
The information in this press release contains certain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 with respect to the Business Combination. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “aim,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result” and similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) changes in the markets in which Crown competes, including with respect to its competitive landscape, technology evolution or regulatory changes; (ii) the risk that Crown will need to raise additional capital to execute its business plans, which may not be available on acceptable terms or at all; (iii) the ability of the parties to recognize the benefits of the business combination agreement and the Business Combination; (iv) the lack of useful financial information for an accurate estimate of future capital expenditures and future revenue; (v) statements regarding regulatory authorization and approval expectations, (vi) statements expressing beliefs and expectations regarding the development of Crown’s LNG terminals, including the Kakinada Project and Grangemouth Project, (vii) statements regarding the business operations and prospects of third-parties, (viii) statements regarding potential financing arrangements, (vi) statements regarding future discussions and entry into contracts, (ix) statements relating to our goals, commitments and strategies in relation to environmental matters; and (x) those factors discussed in Crown’s and Catcha’s filings with the SEC and that are contained in the Proxy Statement relating to the Business Combination. You should carefully consider the foregoing factors and the other risks and uncertainties that will be described in the “Risk Factors” section of the Proxy Statement and other documents to be filed by Crown from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and while Crown and Catcha may elect to update these forward-looking statements at some point in the future, they assume no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law. Neither Crown nor Catcha gives any assurance that Crown and Catcha will achieve their respective expectations.
Contacts
For Investors
Caldwell Bailey
ICR, Inc.
CrownLNGIR@icrinc.com
For Media
Zach Gorin
ICR, Inc.
CrownLNGPR@icrinc.com
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