DevvStream Corp. (NASDAQ: DEVS) and Southern Energy Renewables Inc. have entered into a definitive agreement to combine under a new U.S.‑domiciled, Nasdaq‑listed company that will operate under the name Southern Energy Renewables. Carl Stanton will serve as the combined company’s chief executive officer.
The transaction is supported by a $2.0 million private‑placement equity (PIPE) investment from Southern Energy at $15.58 per share, giving Southern equity holders an estimated 70% stake and DevvStream shareholders a 30% stake in the new entity. Southern Energy has also secured a $402 million bond allocation from the Louisiana Community Development Authority to fund a $1 billion biomass‑to‑fuel facility in Louisiana that will produce green methanol and carbon‑negative sustainable aviation fuel (SAF).
The combination is designed to merge DevvStream’s blockchain‑based carbon‑monetization platform with Southern Energy’s proven biomass‑to‑fuel technology, creating a dual‑division platform that can capture growing demand for SAF and green methanol under tightening regulatory mandates such as ReFuelEU and IMO’s low‑carbon shipping rules. By leveraging domestic feedstock and a U.S. workforce, the new company aims to reduce the cost premium that has slowed alternative fuel adoption and to position itself as a competitive player in the emerging clean‑fuel market.
DevvStream’s financial profile highlights the urgency of the deal. The company’s current ratio sits at 0.23, indicating short‑term liquidity pressure, and its stock has fallen 75% over the past year, reflecting investor concern. Revenue remains modest, with $10,164 reported for the nine months ended April 30, 2025, and a net income of $3.52 million in Q3 2025, a turnaround from a prior year loss. These figures underscore the limited scale of DevvStream’s operations and the need for capital and strategic partnership to accelerate growth.
Southern Energy’s Louisiana facility is a $1 billion project that will integrate carbon capture and storage through a partnership with Monroe Sequestration Partners. The $402 million bond allocation provides a significant portion of the project’s financing, while the facility’s carbon‑negative SAF output aligns with ReFuelEU’s 2% SAF mandate in 2025 and the IMO’s 70% reduction target by 2050. The project’s scale and regulatory alignment position the combined company to capture a share of the expanding SAF and green methanol markets.
Management emphasized the strategic fit and market opportunity. Carl Stanton said the partnership “addresses tightening global decarbonization mandates by offering a U.S.‑built, integrated clean‑fuel platform that leverages domestic feedstock and workforce.” Nevin Smalls highlighted the project’s cost advantage and the potential to compete with international producers. Sunny Trinh noted that DevvStream’s recent earnings “focus on disciplined expansion, growing revenues through both organic opportunities and targeted acquisitions that enhance our environmental‑asset portfolio.”
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