New Era Helium, Inc. (NEH) has reached a significant milestone by completing its business combination with Roth CH V Holdings, Inc. and Roth CH Acquisition V. Co., a move that paves the way for its Nasdaq listing under the ticker symbols 'NEHC' and 'NEHCW' starting December 9, 2024. This development is a testament to the company's strategic growth and its ambition to become a leading consolidator in the helium and natural gas production industry.
With over 137,000 acres in Southeast New Mexico and 1.5 billion cubic feet of proved and probable helium reserves, NEH is well-positioned to meet the increasing demand for helium, especially in the data center sector that powers artificial intelligence. The company has also secured substantial financing to support its expansion, including a $75 million equity purchase agreement and a $10 million advance in senior secured notes from ATW Partners Opportunities Management, LLC, alongside warrants for up to an additional $30 million in common stock.
Further strengthening its market position, NEH announced a non-binding joint venture with Sharon AI, Inc. to develop a 90MW net-zero Tier 3 data center in the Permian Basin. This project aims to merge Sharon AI's high-performance computing expertise with NEH's helium and natural gas resources, creating a sustainable facility expected to offset around 250,000 metric tons of CO2 annually through carbon capture technology.
E. Will Gray II, Chairman and CEO of New Era Helium, highlighted the Nasdaq listing as a pivotal moment for the company, enhancing its visibility among institutional investors in the AI datacenter and helium markets. This increased exposure is crucial as NEH aims to leverage the growing demand for helium in high-tech applications, including AI-powered data centers, MRI machines, semiconductor manufacturing, and rocket propulsion.
The timing of NEH's public market debut is opportune, given the current supply constraints and price volatility in the helium market. As a vertically integrated helium producer, NEH is poised to address some of these challenges, offering investors a unique opportunity to engage with the critical resource sector. The company's strategic initiatives and partnerships could significantly impact the helium supply chain, AI infrastructure development, and the advancement of sustainable energy practices in technology.
