An extremely compelling investment opportunity crossed my desk last week, and I had no idea how big it could be until I started digging into it more.
There is a potential merger in the works that could provide far-sighted investors and elite traders with an early breakout buy opportunity.
But first we need to backtrack a minute... This early investment opportunity is the subject of a highly anticipated merger announced with a Special Purpose Acquisition Company, or what is referred to as a SPAC.
I will explain more about what a SPAC is, the details of a potential merger with Roth CH Acquisition V Co (NASDAQ: ROCL), and what makes this particular investment play so appealing.
 Podcast: Will Gray, from New Era Helium, and John Lipman, from Roth CH V (ROCL) | ||||
| Will Gray, co-Founder and CEO of New Era Helium Corp., and John Lipman, co-CEO and co-Chairman of Roth CH Acquisition V Co. (NASDAQ: ROCL) discuss the business combination announced in January that would see New Era become a unique public company. | ||||
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| SPAC Insider is the leading #1 resource for comprehensive data on the SPAC market along with proprietary research and insights using insightful, powerful research using industry leading data. Over 100+ Press Citations including The Wall Street Journal, Bloomberg, Barron’s and The New York Times. | ||||
SPACs are investment vehicles created with the purpose of raising capital through an initial public offering (IPO) and ultimately acquiring a private company to merge into the SPAC.
SPACs are also known as “blank check companies” because they are formed without a specific acquisition in mind.
There are several advantages for the target company when it merges with a SPAC.
First, Roth CH Acquisition V Co. (NASDAQ: ROCL) is already trading on NASDAQ. Once the merger is completed, the target company plans to be trading on the NASDAQ in a matter of weeks, as opposed to the long and sometimes arduous approval process of the company going public in a conventional IPO.
Another major advantage of merging with a SPAC is the amount of cash on hand from the trust account and money raised in a PIPE that could be available to the merging company. In this case, approximately $17.5 million, if available, could help the incoming (or merged) company achieve its business objectives.
Below, I have included a brilliant example of a highly successful SPAC transaction, based on its market performance and lucrative gains it achieved post-merger.
DraftKings (NASDAQ: DKNG)
Overview: DraftKings, a digital sports entertainment and gaming company, went public
through a SPAC merger with Diamond Eagle Acquisition Corp on April 24, 2020 at $19.35 per/share.
Impact: DraftKings' immense success helped legitimize the SPAC model as a viable path to the public markets, especially for high-growth companies in emerging sectors. Draftkings stock hit a high of $67.14 on March 16, 2021, delivering a whopping +247% gain to investors. The stock continues to trade well today.
As mentioned above, the specific SPAC I am very captivated by is Roth CH Acquisition V Co. (NASDAQ: ROCL) which is managed by Roth CH, a joint partnership between Roth Capital Partners and Craig-Hallum Capital Group.
The SPAC currently trades on the NASDAQ and has approximately $17.5 million cash from its trust account currently on the books.
The Roth CH team is a highly experienced sponsor with extensive SPAC transaction experience.
ROCL seeks to leverage the extensive history and successful track record of two leading growth investment banks (Roth Capital Partners and Craig-Hallum Capital Group) by utilizing its combined full-service investment banking platforms and its dedicated SPAC teams to bring a compelling growth company to the market.
The Roth CH team can leverage long-standing relationships with leading institutional and private investors to raise capital, drive value, and probably most important, assist in aftermarket support for the merging company.
ROCL has signed a definitive agreement with an exciting target company currently producing helium, natural gas and natural gas liquids (NGLs) in the world-famous oil and gas fields of the Permian Basin which is located between Texas and the southeast New Mexico border.
Final approvals of the merger are expected to happen in the next few weeks resulting in the target company having an expected valuation of about $90 million with the newly merged company immediately trading on the NASDAQ market.
Who is this highly anticipated target company and why I am so interested in getting in early?
This, my fellow smart investors, is where the story gets even more interesting...
The investment opportunity I am talking about is helium, a critical element that is essential in the production of computer chip manufacturing (everything from your smartphone to your TV to your refrigerator), scientific research, healthcare (medical devices such as MRI machines), communications, space exploration and defense, and includes advancements into AI development.
Helium is a very important element/ gas. It has an incredibly low boiling point and is non-reactive, making it indispensable in high-tech and medical applications.
Since helium has such an extremely low boiling point, close to absolute zero, it is essential in cooling various manufacturing applications.
For example, in the medical field, helium is critical in the operation of MRI machines where the gas is used to cool the superconducting magnets.
Or in the tech industry, helium is used as a shielding and cooling gas in the manufacturing of semiconductors and fiber optic cables. Since helium is non-reactive with other elements, it provides the perfect shield from unwanted reactions that could damage sensitive components.
And let’s not forget the aerospace industry where helium is used in the pressurization of the rocket propulsion systems and for purging fuel and oxidizer lines. Helium’s low density and inertness make it perfect for these mission critical applications.
As the demand for these advanced technologies skyrockets, so does the demand for helium, making it an extremely high-value commodity.
Recognizing its critical importance, major economies such as the United States, the European Union and mainland China have listed helium on their critical materials lists due to the high risk of supply shortages.
This designation underscores the strategic value of helium and the necessity of securing reliable sources to sustain technological and industrial advancements.
I am now convinced more than ever that helium could be the next explosive investment opportunity of our time.
Science and Research
Medical Field
Technology
Manufacturing
Extracting helium is by no means a simple task. Helium is most often found in natural gas fields and requires sophisticated, capital-intensive extraction and purification processes.
A typical concentration of helium found within natural gas is in the range of about 0.01% to 3% — a very small amount of the total extraction.
To make matters worse, helium is not recyclable. Once released into the atmosphere, helium eventually escapes into space, meaning it cannot be recovered.
Geopolitical issues such as the Ukraine war have directly impacted major producers resulting in the scarcity of this very special and finite gas. The difficulty of extraction and sourcing new reserves has led to fragile supply as global industrial demand continues to surge upwards.
Demand is growing exponentially; supply is struggling to catch up to demand; and helium prices could go to the stratosphere.
As you can see in the helium chart below, helium prices have gone parabolic, growing over +400% in the last few years.
The current market for helium could be a very lucrative investment opportunity for educated investors.
So how can you invest in helium?
As I alluded to above, Roth CH Acquisition V Co. (NASDAQ: ROCL) announced a highly anticipated merger earlier this year. On January 4, it signed an agreement to merge with New Era Helium Corp.
This signed definitive agreement is for a business combination at a pre-money valuation of $90 million.
Shortly after being approved by ROCL shareholders, New Era Helium Corp. plans to be trading on the NASDAQ market in a matter of weeks.
Any infusion of capital that could come from the transaction will enable New Era Helium to expand its production capabilities, invest in advanced extraction and processing technologies, and explore new reserves.
A strong financial position will also support strategic acquisitions and partnerships, further enhancing its competitive advantage.
New Era Helium’s primary asset of 137,000 gross acres is located in the world-famous Permian Basin, primarily Southeastern New Mexico.
The company is reporting they are sitting on about 2 BCF of gross proved and probable helium reserves.
The company was able to audit 315 of its 388 wells to determine they contain a mean helium content of 0.5 Mol%.
These reserves are not just speculative; they are actively producing helium, natural gas and natural gas liquids today — generating revenue and underscoring the company’s operational capabilities.
The company is currently constructing a helium processing plant (Pecos Slope Plant) estimated to be completed by the end of Q2 2025.
The new plant will allow New Era Helium to produce gaseous helium for sale to major players. It also allows the company to transport the helium gas to more customers ready to buy within the demanding helium marketplace.
The new plant is expected to be able to produce approximately 2.7 million standard cubic feet (MMscf) of gaseous helium per month or an estimated 32 MMscf per year. New Era Helium anticipates that the plant will also have the capacity to produce 477,000 MCF/D per month of methane and 32,545 BBLs per month of natural gas liquids.
Once operational, which is expected in Q2 2025, New Era Helium production could represent between 1%–2% of the total North American helium market, according to the company.
New Era Helium has 3 solid revenue streams. This is what makes the company so unique versus other publicly traded helium companies. They are producing additional products that can be sold if and when the price of helium shifts.
1. Secured Long-Term Offtake Helium Contracts
New Era Helium has secured two long-term helium offtake contracts, securing a stable revenue stream for the company for a whopping 10 years.
These agreements are with major Tier-1 and Tier-2 international buyers and are estimated to generate $113 million in non-discounted helium revenue alone.
2. Natural Gas Production
In addition to helium production, New Era Helium produces energy from natural gas wells, providing an additional revenue stream.
This diversification not only enhances revenue but also mitigates risks associated with any fluctuations that may occur within the helium market.
3. Natural Gas Liquids (NGLs) Production
New Era Helium has 4,232MBbl of Net Proved NGL’s (1P) and 9,369MBbl of Net Probable NGL’s (2P) in its holdings providing a third revenue stream for the company.
Natural gas liquids (NGLs) are hydrocarbons — ethane, propane, butane, isobutane, and pentane are all NGLs. There are many uses for NGLs, spanning nearly all sectors of the economy.
NGLs are used as inputs for petrochemical plants, burned for space heat and cooking, and blended into vehicle fuel.
Again, another source of income for the company to maintain profitability.
New Era Helium’s leadership team and Board Nominees are a key driver of its success. Led by E. Will Gray II and helium expert Phil Kornbluth (who has been tapped to be the Lead Independent Board Director), the executive team and Board bring decades of expertise in oil, gas and helium extraction. The company’s proven track record and strategic vision positions New Era Helium for exceptional growth and market leadership.
E. Will Gray II: Strategic Thinker with Operational Expertise
Will, Chairman and CEO of New Era Helium, has over 25 years of experience in the energy sector, specifically in the Permian Basin and Mid-Continent. Will has a proven track record in managing conventional oil and gas extraction and production operations.
Phil Kornbluth (Lead Independent Board Member Nominee)
Phil brings over 41 years of experience and a vast network to New Era Helium, with an extensive history in the oil and gas industry. Previously Phil was President of Kornbluth Helium Consulting, LLC and developed supply agreements with ExxonMobil, Encana, and ConocoPhillips.
Now you can see why I'm so enthusiastic about Roth CH Acquisition V Co. (NASDAQ: ROCL) and the exciting potential of the proposed New Era Helium Corp. merger.
By taking a chance and making a small investment in ROCL… you could unlock the potential for substantial future returns. Of course, all of this is a bet on the successful closing of the merger between Roth CH Acquisition V Co. (NASDAQ: ROCL) and New Era Helium.
Look, if and when this merger closes, I believe New Era Helium could be extremely well-positioned for exceptional growth and profitability well into the future. This merger candidate boasts proven producing reserves, secured long-term contracts, diversified revenue streams and expert leadership.
What’s not to like?
I’m not going to say there are not risks associated with this trade, but early buying opportunities like this do not come around every day. Identifying an early buy-in on a potential quality SPAC transaction or a promising high potential merger candidate is rare.
MY RECOMMENDATION: Don’t miss out on this chance to become an early investor in what could become a sizeable early profit opportunity.
MF Williams, Contributor
for Investors News Service
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This communication contains information with respect to a proposed business combination (the “Proposed Business Combination”) among New Era Helium Corp., a Nevada corporation (“NEH”), Roth CH Acquisition V Co., a Delaware corporation (“ROCL” and Roth CH V Merger Sub Corp., a Delaware corporation and a wholly-owned subsidiary of ROCL. In connection with the Proposed Business Combination, ROCL In connection with the Proposed Business combination, ROCL has filed a preliminary proxy statement/prospectus with the SEC and after the registration statement is declared effective, ROCL will mail a definitive proxy statement/final prospectus relating to the Proposed Business Combination to its stockholders. ROCL’s stockholders and other interested persons are advised to read the preliminary proxy statement/prospectus and the amendments thereto, and, when available, the definitive proxy statement/final prospectus and other documents filed in connection with the proposed business combination, as these materials will contain important information about NEH, ROCL and the Proposed Business Combination. Such stockholders will also be able to obtain copies of the preliminary proxy statement/prospectus, the definitive proxy statement/final prospectus and other documents filed with the SEC, without charge, once available, at the SEC’s website at www.sec.gov. The documents filed by ROCL with the SEC also may be obtained free of charge upon written request to Roth CH Acquisition V Co., 888 San Clemente Drive, Suite 400, Newport Beach, CA 92660.
Forward Looking Statements
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, ROCL’s and NEH’s expectations or predictions of future financial or business performance or conditions. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates” “intends,” or similar expressions. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. Certain of these risks are identified and discussed in ROCL’s final prospectus for its initial public offering, filed with the SEC on December 2, 2021, under the heading “Risk Factors.” These risk factors will be important to consider in determining future results and should be reviewed in their entirety. These forward-looking statements are expressed in good faith, and ROCL and NEH believe there is a reasonable basis for them. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and neither ROCL nor NEH is under any obligation, and expressly disclaim any obligation, to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
In addition to factors previously disclosed in ROCL’s reports filed with the SEC and those identified elsewhere in this this communication, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (i) expectations regarding NEH’s strategies and future financial performance, including its future business plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures, and NEH’s ability to invest in growth initiatives and pursue acquisition opportunities; (ii) the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement; (iii) the outcome of any legal proceedings that may be instituted against ROCL or NEH following announcement of the Proposed Business Combination and the transactions contemplated thereby; (iv) the inability to complete the Proposed Business Combination due to, among other things, the failure to obtain ROCL stockholder approval on the expected terms and schedule, as well as the risk that regulatory approvals required for the Proposed Business Combination are not obtained or are obtained subject to conditions that are not anticipated; (v) the failure to meet the minimum cash requirements of the Merger Agreement due to ROCL stockholder redemptions and the failure to obtain replacement financing; the inability to complete the concurrent PIPE, (vi) the risk that the Proposed Business Combination or another business combination may not be completed by ROCL’s business combination deadline and the potential failure to obtain an extension of the business combination deadline; (vii) the risk that the announcement and consummation of the Proposed Business Combination disrupts NEH’s current operations and future plans; (viii) the ability to recognize the anticipated benefits of the Proposed Business Combination; (ix) unexpected costs related to the Proposed Business Combination; (x) the amount of any redemptions by existing holders of the ROCL Common Stock being greater than expected; (xi) limited liquidity and trading of ROCL’s securities; (xii) geopolitical risk and changes in applicable laws or regulations; (xii) the possibility that ROCL and/or NEH may be adversely affected by other economic, business, and/or competitive factors; (xiv) operational risk; (xv) risk that the COVID-19 pandemic, and local, state, and federal responses to addressing the pandemic may have an adverse effect on our business operations, as well as our financial condition and results of operations; and (xvi) the risks that the consummation of the Proposed Business Combination is substantially delayed or does not occur.
Any financial projections in this communication are forward-looking statements that are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond ROCL’s and NEH’s control. While all projections are necessarily speculative, ROCL and NEH believe that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection extends from the date of preparation. The assumptions and estimates underlying the projected results are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the projections. The inclusion of projections in this [communication] should not be regarded as an indication that ROCL and NEH, or their representatives, considered or consider the projections to be a reliable prediction of future events.
Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.
The foregoing list of factors is not intended to be all-inclusive or to contain all the information that a person may desire in considering an investment in ROCL and is not intended to form the basis of an investment decision in ROCL. Readers should carefully review the foregoing factors and other risks and uncertainties described in the “Risk Factors” section of the preliminary proxy statement/prospectus and the other reports, which ROCL has filed or will file from time to time with the SEC. There may be additional risks that neither ROCL nor NEH presently know, or that ROCL and NEH currently believe are immaterial, that could cause actual results to differ from those contained in forward looking statements. For these reasons, among others, investors and other interested persons are cautioned not to place undue reliance upon any forward-looking statements in this communication. All subsequent written and oral forward-looking statements concerning ROCL and NEH, the Proposed Business Combination or other matters and attributable to ROCL and NEH or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above.
Participants in the Solicitation
ROCL, NEH and their respective directors and executive officers may be considered participants in the solicitation of proxies with respect to the Proposed Business Combination described herein under the rules of the SEC. Information about such persons and a description of their interests are contained in the preliminary proxy statement/prospectus. These documents can be obtained free of charge from the sources indicated above.
No Offer or Solicitation
This communication does not constitute a proxy statement or solicitation of a proxy, consent, vote or authorization with respect to any securities or in respect of the Proposed Business Combination and shall not constitute an offer to sell or exchange, or a solicitation of an offer to buy or exchange any securities, nor shall there be any sale, issuance or transfer of any such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, or an exemption therefrom.
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Sources:
[1] Roth Ch website: https://rocl.rothch.com/
[2] New Era Helium website: https://www.newerahelium.com/
[3] SEC Filings: https://rocl.rothch.com/sec-filings#%23document-200-0001829126-24-000234-2
