New Era Energy & Digital (NASDAQ:NUAI) has signed a securities purchase agreement for a private placement expected to bring in gross proceeds of about US$64 million, as the company advances leasing negotiations for 757 MW at its Texas Critical Data Centers (TCDC) project.
The developer of next-generation digital infrastructure and integrated power assets will issue 23,272,727 shares of common stock at US$2.75 per share in the PIPE.
"We executed this capital raise in order to strengthen our financial position in a challenging market and meet our near-term financing needs, allowing us to advance leasing negotiations for 757 MW across Phases 1 and 2 at Texas Critical Data Centers," said Charlie Nelson, CEO of New Era.
"We have key permits in hand, Phase 1 power secured and fully funded, and a highly experienced in-house development and operations team executing on key priorities," Nelson added.
"Following closing, we will have a strong net cash position, alongside the existing up to $200 million post-lease financing option under our Macquarie facility. Our near-term priority is to turn these advantages into long-term leases and enduring shareholder value."
TCDC Phase 1 has secured up to 207 MW of firm, contracted power under a 20-year power purchase agreement, with delivery expected in the third quarter of 2027.
New Era plans to use the net proceeds to repay recent borrowings under the Macquarie facility, and for working capital and other general corporate purposes.
The deal is expected to close on October 30, subject to customary closing conditions.
