Verde Clean Fuels has closed the previously announced $50m equity investment by Cottonmouth Ventures, a wholly owned subsidiary of Diamondback Energy.
The investment consists of the purchase of 12.5 million shares of Verde’s Class A common stock by Cottonmouth at a purchase price of $4 per share.
The investment represents the second investment by Cottonmouth in Verde over the past two years, for a total investment of $70m, making Cottonmouth the second largest shareholder. Proceeds are expected to be used to further the development and construction of potential natural gas-to-gasoline production plants and other general corporate purposes.
The proposed plants to be jointly developed by Verde and Cottonmouth would produce fully-refined gasoline utilizing Verde’s patented (STG+®) process from associated natural gas feedstock supplied from Diamondback’s operations in the Permian Basin.
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