RBio Energy Corporation to Become a Public Company through a Business Combination with Perception Capital Corp. III

Rhea-AI Summary

RBio Energy Corporation and Perception Capital Corp. III. have entered into a definitive business combination agreement that would result in RBio Energy becoming a publicly traded company. The merger is expected to close in the second quarter of 2024, and the combined company is anticipated to list on the Nasdaq Stock Market. Under the terms of the agreement, RBio Energy will receive equity in Perception valued at approximately $350 million. The Transaction is expected to catalyze RBio Energy’s planned development of biorefinery assets and biomass and biogas power generation capacity, as well as build out an industry consolidation platform to acquire assets and invest capital for growth.

Insights

Financial Analyst

The merger between RBio Energy and Perception Capital Corp. III represents a strategic move that aligns with the current trend of SPAC (Special Purpose Acquisition Company) transactions, which have become a popular vehicle for private companies to go public. The cash infusion from Perception's trust account, which exceeds $40 million, combined with the equity value of approximately $350 million, suggests a significant capital base for RBio Energy's expansion plans. This capital will likely be allocated towards developing biorefinery assets and enhancing biomass and biogas power generation capacities.

The potential listing on the Nasdaq Stock Market could provide RBio Energy with greater visibility, increased liquidity and access to a broader investor base. However, investors should be mindful of the inherent risks associated with SPAC mergers, such as the possibility of overvaluation, integration challenges and regulatory hurdles. The long-term success of the merger will depend on RBio Energy's ability to effectively deploy the capital towards profitable and sustainable projects and navigate the competitive landscape of the clean energy sector.

Energy Sector Analyst

The announcement of RBio Energy's intention to develop biorefinery assets and power generation capacity is indicative of the growing emphasis on renewable energy sources. The clean energy sector is experiencing a surge in investment, partly due to incentives like the Inflation Reduction Act, which aims to reduce greenhouse gas emissions through various measures, including tax credits for clean energy investments. RBio Energy's focus on bioenergy and biomaterials places it at the forefront of a transition towards more sustainable energy practices.

However, the scalability and cost-competitiveness of bioenergy projects are critical factors that will determine the company's position in the market. The ability to secure feedstock for biomass and to operate biorefineries efficiently will be crucial for RBio Energy's growth. Investors should consider the technical and logistical challenges inherent in the bioenergy sector, such as supply chain management and technology risks, when evaluating the potential impact of this merger on the company's future performance.

Market Research Analyst

The anticipated merger and subsequent Nasdaq listing is a significant milestone for RBio Energy, as it will likely enhance the company's profile and attract attention from institutional investors. The clean energy market is highly competitive and subject to rapid technological advancements. RBio Energy's strategy to grow through expected acquisitions could consolidate its market position and enable it to leverage economies of scale.

Market trends indicate a growing consumer and investor appetite for sustainable and renewable energy sources, which bodes well for RBio Energy's business model. However, the success of their consolidation strategy hinges on identifying and integrating the right assets that complement their core business. The ability to execute a successful M&A strategy will be a key determinant in realizing the anticipated growth and market penetration. Stakeholders should closely monitor the company's post-merger integration process and the subsequent performance of the acquired assets to assess the long-term viability of the investment.

Transaction expected to catalyze RBio Energy's planned development of biorefinery assets and biomass and biogas power generation capacity

RBio Energy to grow platform through expected acquisitions

Merger anticipated to close in second quarter 2024; combined company anticipated to list on the Nasdaq Stock Market

ABERDEEN, Wash. and NEW YORK, Feb. 07, 2024 (GLOBE NEWSWIRE) -- RBio Energy Corporation, which plans to develop clean energy projects (“RBio Energy”) and Perception Capital Corp. III., a special purpose acquisition company (Nasdaq: PFTA, PFTAW and PFTAU) (“Perception”), today announced they have entered into a definitive business combination agreement that would result in RBio Energy becoming a publicly traded company (the “Transaction”). Perception currently has over $42 million of cash in the trust account established in connection with its initial public offering for the benefit of its shareholders. Under the terms of the business combination agreement, the holders of the outstanding shares of RBio Energy will receive equity in Perception valued at approximately $350 million, subject to adjustments.

The boards of directors of both RBio Energy and Perception have unanimously approved the proposed Transaction, which is subject to customary closing conditions, including receipt of all regulatory approvals, as well as the approval of the proposed Transaction by Perception’s shareholders. The closing of the Transaction is anticipated to occur in the second quarter of 2024 and RBio Energy is anticipated to list its securities on the Nasdaq Stock Market.

The Transaction is expected to catalyze RBio Energy’s planned development of biorefinery assets and biomass and biogas power generation capacity. In addition, RBio Energy intends to build out an industry consolidation platform to acquire assets and invest capital for growth.

“We expect this Transaction to unlock a rich lineup of opportunities for RBio Energy,” said Richard Bassett, Chairman and Chief Executive Officer of RBio Energy. “With strong private and public sector support, including potential opportunities as a result of the Inflation Reduction Act, we look forward to building a clean, profitable, and viable bioenergy and biomaterials business.”

“We are excited about partnering with Richard and his talented team whom we’ve known for over 15 years,” said Scott Honour, Chairman of Perception.

Rick Gaenzle, Chief Executive Officer of Perception, added, “Working with strong businesses run by strong operators is core to Perception’s strategy and Richard’s track record is proof of that.”

Tao Tan, President of Perception, added, “Developing profitable and viable clean energy projects that create jobs and support the energy transition is a win-win-win for our investors, our communities, and our environment. We look forward to rolling up our sleeves to help make it happen.”

Advisors

Cohen & Company Capital Markets, a division of J.V.B. Financial Group, LLC (“CCM”), is serving as exclusive financial advisor and lead capital markets advisor to Perception. Greenberg Traurig LLP is serving as counsel to Perception.

About RBio Energy Corporation

RBio Energy is a newly-formed company based in Washington state, with the intent to develop, acquire, and consolidate biorefinery, biogas, and biomass assets. RBio Energy’s initial activities are expected to be focused on the Pacific Northwest of the United States.

About Perception Capital Corp. III

Perception is a special purpose acquisition company affiliated with Perception Capital Partners IIIA LLC, a private and public equity investor.

Additional Information and Where to Find It

In connection with the business combination agreement and the proposed Transaction, Perception intends to file with the Securities and Exchange Commission (the “SEC”) a registration statement on Form S-4 (the “Registration Statement”), which will include a preliminary proxy statement/prospectus certain other related documents, which will be both the proxy statement to be distributed to the stockholders of Perception in connection with Perception’s solicitation of proxies for the vote by its stockholders with respect to the proposed Transaction and other matters as may be described in the definitive proxy statement, as well as a prospectus relating to the offer and sale of the securities to be issued in the proposed Transaction. This press release does not contain any information that should be considered by Perception’s stockholders concerning the proposed Transaction and is not intended to constitute the basis of any voting or investment decision in respect of the proposed Transaction or the securities of the combined company. The stockholders of Perception and other interested persons are advised to read, when available, the preliminary proxy statement/prospectus and the amendments thereto and the definitive proxy statement/prospectus and documents incorporated by reference therein filed in connection with the proposed Transaction, as these materials will contain important information about Perception, RBio Energy, the business combination agreement and the proposed Transaction. When available, the definitive proxy statement/prospectus and other relevant materials for the proposed Transaction will be mailed to stockholders of Perception as of a record date to be established for voting on the proposed Transaction. Stockholders of Perception will also be able to obtain copies of the Registration Statement, the preliminary proxy statement/prospectus, the definitive proxy statement/prospectus and other documents filed with the SEC that will be incorporated by reference therein, without charge, once available, at the SEC's web site at www.sec.gov or by directing a request to: Perception Capital Corp. III, 767 5^th Avenue, 15^th Floor, New York, NY 10022, Attention: Investor Relations or by email at investors@perceptioncapitalpartners.com.

Participants in the Solicitation

Perception, RBio Energy and their respective directors, executive officers, other members of management and employees may be deemed participants in the solicitation of proxies from Perception's stockholders with respect to the proposed Transaction. Investors and securityholders may obtain more detailed information regarding the names and interests in the Transaction of the directors and officers of each of Perception and RBio Energy with respect to the proposed Transaction in the proxy statement/prospectus for the proposed Transaction when available and in Perception’s filings with the SEC.

No Offer or Solicitation

This press release shall not constitute a solicitation of a proxy, consent, or authorization with respect to any securities or in respect of the proposed Transaction. This press release shall also not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, or an exemption therefrom.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the safe harbor for forward-looking statements provided by Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 including, without limitation, statements related to: the parties’ ability to close the proposed Transaction, including the ability of the companies to secure all required regulatory and shareholder approvals for the proposed Transaction, as applicable; the anticipated benefits of the proposed Transaction, including the potential amount of cash that may be available to RBio Energy’s shareholders upon consummation of the Transaction; sources and uses of cash from the Transaction; RBio Energy’s planned development of biorefinery assets and biomass and biogas power generation capacity and RBio Energy’s intent to build out an industry consolidation platform to acquire assets and invest capital for growth; the anticipated timing to close the Transaction; RBio Energy’s expectation that its shares of common stock will be accepted for listing on the Nasdaq Stock Market following the closing of the Transaction; the anticipated financial and business performance of RBio Energy; and RBio Energy’s anticipated future operating results. You are cautioned not to place undue reliance on these forward-looking statements, which are current only as of the date of this press release. Each of these forward-looking statements involves risks and uncertainties. Important factors that could cause actual results to differ materially from those discussed or implied in the forward-looking statements include, but are not limited to: the risk that the Transaction may not be completed in a timely manner or at all; the risk that the Transaction may not be completed by Perception's business combination deadline and the potential failure to obtain an extension of the business combination deadline if sought by Perception; the failure to obtain requisite approval for the Transaction or meet other closing conditions; the occurrence of any event, change or other circumstances that could give rise to the termination of the business combination agreement in respect of the Transaction; failure to achieve sufficient cash available (taking into account all available financing sources) following any redemptions of Perception’s public shareholders; failure to obtain the requisite approval of Perception’s shareholders; failure to meet relevant listing standards in connection with the consummation of the Transaction; failure to recognize the anticipated benefits of the Transaction, which may be affected by, among other things, competition, the ability of the combined entity to maintain relationships with customers and suppliers and strategic alliance third parties, and to retain its management and key employees; potential litigation relating to the proposed Transaction; changes to the proposed structure of the Transaction that may be required or appropriate as a result of the announcement and execution of the Transaction; unexpected costs and expenses related to the Transaction; estimates of the combined company’s financial performance being materially incorrect predictions; RBio Energy’s status as a newly formed company with no existing operations, and the potential that it is not able to successfully develop clean energy projects; inability to successfully integrate with the operations of RBio Energy or other factors; general economic or political conditions; negative economic conditions that could impact RBio Energy and the clean energy industry in general; reduction in demand for RBio Energy’s planned products; changes in the markets that RBio Energy targets or that the combined company intends to target; any change in laws applicable to Perception or RBio Energy or any regulatory or judicial interpretation thereof; and other factors, risks and uncertainties, including those to be included under the heading “Risk Factors” in the proxy statement/prospectus to be later filed with the SEC, and those disclosed in Perception's SEC filings, under the heading “Risk Factors,” including its Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on March 13, 2023, its subsequently filed Quarterly Reports on Form 10-Q and any other subsequent filings. All forward-looking statements are expressly qualified in their entirety by such factors. Neither Perception nor RBio Energy undertakes any duty to update any forward-looking statement except as required by law.

Contact
RBio Energy Corporation
Richard Bassett
Chairman and Chief Executive Officer
investors@rbioenergy.com

Perception Capital Corp. III
Rick Gaenzle
Chief Executive Officer
investors@perceptioncapitalpartners.com

 

FAQ

What is the expected closing date of the merger between RBio Energy and Perception Capital Corp. III.?

The merger is anticipated to close in the second quarter of 2024.

Where is the combined company anticipated to list its securities?

RBio Energy is anticipated to list its securities on the Nasdaq Stock Market.

What is the approximate value of the equity that RBio Energy will receive in Perception under the terms of the business combination agreement?

RBio Energy will receive equity in Perception valued at approximately $350 million.

What is the purpose of the Transaction for RBio Energy?

The Transaction is expected to catalyze RBio Energy’s planned development of biorefinery assets and biomass and biogas power generation capacity, as well as build out an industry consolidation platform to acquire assets and invest capital for growth.