NuScale Power Corporation Announces Completion of Redemption of Warrants

Rhea-AI Summary

NuScale Power (NYSE: SMR) has announced the completion of its warrant redemption program. Approximately 97% of outstanding warrants were exercised by holders to purchase Class A Common Stock at $11.50 per share. This resulted in the issuance of 19,800,548 shares of Common Stock, generating $227.7 million in cash proceeds for the company. All remaining unexercised warrants as of December 19, 2024, were redeemed at $0.01 per warrant. Following this redemption, no warrants remain outstanding, and they have ceased trading on the NYSE.

Positive

• Generated $227.7 million in cash proceeds from warrant exercises
• High 97% warrant exercise rate indicates strong investor confidence
• Successfully completed warrant redemption program, simplifying capital structure

Negative

• Dilution of existing shareholders due to issuance of 19.8 million new shares

Insights

Financial Analyst

NuScale's warrant redemption has significantly strengthened its balance sheet, adding $227.7 million in fresh capital. The 97% voluntary exercise rate demonstrates strong investor confidence in the company's SMR technology and future prospects. This cash infusion provides important working capital for NuScale's ongoing operations and development of its small modular reactor technology.

The removal of these warrants eliminates potential future dilution concerns and simplifies the company's capital structure. The high exercise rate at $11.50 per share, despite the current market price being lower, suggests institutional investors are taking a long-term bullish stance on NuScale's potential in the nuclear energy sector.

This successful warrant redemption transaction has three key implications:

• Improved financial flexibility with substantial cash proceeds
• Stronger capital structure with warrant overhang removed
• Validated investor confidence in NuScale's business model and growth trajectory

Market Research Analyst

The nuclear power sector is experiencing renewed interest amid global energy security concerns and decarbonization efforts. NuScale's successful warrant redemption positions it advantageously in this growing market.

The addition of 19.8 million shares to the float through warrant exercises could impact short-term trading dynamics, but the strong cash position outweighs these considerations. The high warrant exercise rate, even at a premium to current trading prices, indicates sophisticated investors see significant upside potential in NuScale's proprietary SMR technology.

For context, SMR technology is gaining traction as a viable solution for clean baseload power generation, with estimates suggesting the global SMR market could reach $300 billion by 2040. NuScale's strengthened balance sheet enhances its ability to capitalize on this market opportunity and maintain its first-mover advantage in the commercial SMR space.

CORVALLIS, Ore.--(BUSINESS WIRE)-- NuScale Power Corporation (NYSE: SMR), the industry-leading provider of proprietary and innovative advanced nuclear small modular reactor (SMR) technology, today announced the results of its previously announced redemption of all of its outstanding warrants (the Warrants) to purchase shares of the Company’s common stock, par value $0.00001 per share (the Common Stock).

As of December 19, 2024 (the Redemption Date), approximately 97% of the Company’s outstanding Warrants were exercised by the holders thereof to purchase fully paid and non-assessable shares of Class A Common Stock at an exercise price of $11.50 per share, which includes Warrants that were exercised prior to the announcement of the redemption. As a result, holders of the Warrants received an aggregate of 19,800,548 shares of the Company’s Common Stock in exchange for $227.7 million in cash proceeds to the Company. All unexercised and outstanding Warrants as of 5:00 p.m. EST on the Redemption Date were redeemed at a price of $0.01 per Warrant and, as a result, no Warrants currently remain outstanding and the Warrants have ceased trading on the New York Stock Exchange.

About NuScale Power

Founded in 2007, NuScale Power Corporation (NYSE: SMR) is the industry-leading provider of proprietary and innovative advanced small modular reactor (SMR) nuclear technology, with a mission to help power the global energy transition by delivering safe, scalable, and reliable carbon-free energy. The Company’s groundbreaking SMR technology is powered by the NuScale Power Module™, a small, safe, pressurized water reactor that can each generate 77 megawatts of electricity (MWe) or 250 megawatts thermal (gross), and can be scaled to meet customer needs through an array of flexible configurations up to 924 MWe (12 modules) of output.

As the first and only SMR to have its design certified by the U.S. Nuclear Regulatory Commission, NuScale is well-positioned to serve diverse customers across the world by supplying nuclear energy for electrical generation, data centers, district heating, desalination, commercial-scale hydrogen production, and other process heat applications.

To learn more, visit NuScale Power’s website or follow us on LinkedIn, Facebook, Instagram, X and YouTube.

No Offer or Solicitation

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any offer of any of the Company’s securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241216748078/en/

Investor contact

Scott Kozak

Director, Investor Relations

ir@nuscalepower.com

Media contact

Chuck Goodnight

Vice President, Business Development

media@nuscalepower.com

Source: NuScale Power

FAQ

How much cash did NuScale Power (SMR) raise from its warrant redemption program?

NuScale Power raised $227.7 million in cash proceeds from the warrant redemption program through the exercise of warrants at $11.50 per share.

What percentage of SMR warrants were exercised before the redemption deadline?

Approximately 97% of NuScale Power's outstanding warrants were exercised by holders before the December 19, 2024 redemption deadline.

How many new shares did NuScale Power (SMR) issue from the warrant exercise?

NuScale Power issued 19,800,548 new shares of Common Stock as a result of the warrant exercise program.

What happened to unexercised SMR warrants after the redemption date?

Unexercised warrants as of 5:00 p.m. EST on December 19, 2024, were redeemed at $0.01 per warrant and ceased trading on the NYSE.