It looks like Friday is bringing another hydrogen fuel cell play to the public markets, and investors are cheering on the news. In fact, DCRB stock is already climbing after Decarbonization Plus Acquisition (NASDAQ:DCRB) announced it would bring Hyzon public. So what do you need to know about the Hyzon SPAC merger? And what else makes this deal stand out?
To start, Decarbonization Plus is a blank-check company from Riverstone Holdings. Hyzon is a company that is producing fuel cell electric vehicles. Together, they hope to play on the electrification trend taking over the stock market.
With that in mind, here is what you should know about DCRB stock and the Hyzon SPAC merger:
- DCRB stock started trading rather recently, in October 2020.
- At the time, it raised $200 million by offering 20 million units at $10.
- As its name implies, the blank-check company wanted to focus on a goal of global decarbonization.
- In practice, this means it wants to support a company that reduces and compensates for any carbon dioxide emissions.
- Also importantly, Decarbonization Plus is the third decarbonization-focused SPAC from private equity firm Riverstone Holdings.
- Its past deals brought Alta Mesa Resources (NYSE:AMR) and Centennial Resource Development (NASDAQ:CDEV) public.
- Investors should also note that Riverstone announced its next SPAC earlier this week. Once public, Decarbonization Plus Acquisition II will trade as DCRN.
- So where does the Hyzon SPAC merger come in?
- Hyzon is the maker of hydrogen fuel cell vehicles including heavy-duty trucks, coaches and buses.
- It spun off from Singaporean fuel cell maker Horizon Fuel Cell Technologies, which has been making commercial fuel cells for roughly 20 years.
- Hyzon has operations in Europe, Australia, Singapore and China, and it is headquartered in Rochester, New York.
- The deal will value the combined company at more than $2 billion.
DCRB Stock and the Hyzon SPAC Merger
So what do you need to know about DCRB stock and the Hyzon SPAC merger? What makes this deal potentially sparkle for investors?
To start, Hyzon may very well come public at the perfect time. Especially following the inauguration of President Joe Biden, renewable energy plays have had time in the spotlight. This comes as consumers get on board with clean energy, and as the federal government tackles its climate agenda. As part of this, we have seen rallies in stocks like Plug Power (NASDAQ:PLUG) and FuelCell Energy (NASDAQ:FCEL). This broad enthusiasm bodes well for DCRB stock.
Additionally, Hyzon is an intriguing company on its own. Unlike other electric vehicle plays that are working simply with concepts, Hyzon can say it already has cars on the road. According to the company, it delivered more than 400 commercial vehicles just in 2019. Building on this, it plans to deliver 5,000 vehicles in 2023 and then have annual capacity of 40,000 by 2025. It has already inked deals with Fortescue Metals Group, and counts big names like Total (NYSE:TOT) as investors.
However, investors should watch out for one thing. Riverstone Holdings may have a bad SPAC track record. Alta Mesa Resources filed for bankruptcy in September 2019. CDEV stock, another of the combined offerings, is down 70% from its $10 offering price.
Maybe this will be the SPAC that works for Riverstone. With that in mind, keep DCRB stock and the Hyzon SPAC merger on your radar. The electric future is already on its way.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.