WASHINGTON, July 28 (Reuters) – West Virginia has barred 5 big financial institutions, like Blackrock Inc and JPMorgan Chase & Co (JPM.N)
, from new point out organization right after analyzing that they had been boycotting the fossil fuel business.
Goldman Sachs (GS.N)
, Morgan Stanley and Wells Fargo & Co are also barred on similar grounds, according to State Treasurer Riley Moore.
Spokespeople for Wells Fargo and Morgan Stanley stated the financial institutions disagreed with the determination, and a spokesperson for JPMorgan identified as it “disconnected from the info.” A BlackRock spokesperson stated it also disagreed with the decision.
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“BlackRock does not boycott strength businesses, and we do not go after divestment from sectors and industries as a coverage,” the spokesperson reported.
Goldman Sachs did not right away remark.
The move to kick out some of the world’s largest financial institutions, which include the world’s major asset manager, Blackrock, comes as Republicans are ramping up tension on Wall Street to move back from attempts to tackle local weather improve and deal with other social problems.
Reuters had previously documented that states led by Republicans are swiftly expanding their endeavours to punish economic companies for “woke” stances on troubles like fossil fuels and guns. read more
West Virginia is the initially point out to move to kick out Wall Road firms, though some other states, including Texas, have enacted comparable laws.
Moore said the companies were being barred following a evaluate of their policies and community statements observed them to have guidelines “categorically limiting professional relations with power corporations engaged in particular coal mining.” He is authorized to prohibit money companies from new condition banking organization under a regulation the point out passed earlier this 12 months.
6 banking institutions were at first identified by West Virginia as possible boycotters of the fossil fuel sector. All the companies responded and disputed the assert, whilst noting they are often criticized by local weather activists for doing too small to struggle climate transform. read far more
A single of them, U.S. Bancorp (USB.N)
, was taken off the checklist just after the financial institution taken off policies versus funding coal creation, in accordance to Moore. A bank spokesperson explained it was pleased to not be excluded from the point out, but that its policies had been in area prior to the passage of the new West Virginia regulation.
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Reporting by Pete Schroeder Further reporting by Ross Kerber Modifying by Andrea Ricci and Mark Porter
“We’re witnessing a tragic series of events that are unfolding in Sri Lanka right now that should be a warning to anyone who thinks that, you know, it is up to countries themselves to figure out how to deal with this crisis,” said Achim Steiner, Administrator of the UN Development Programme (UNDP), in reference to the South Asian nation’s debt default last month – the first in its history.
The global cost-of-living crisis, catalyzed by the war in Ukraine, is sending tens of millions into poverty, warns our new report.
“That default essentially means the country is no longer able to pay – or not only service – its debt, but actually to import fundamental parts of what keeps an economy alive, whether it is petrol or it is diesel, whether it is fuel, whether it is medicines,” Mr. Steiner added.
The warning came as new data from the UN Food and Agriculture Organization (FAO) indicated that the number of people affected by hunger globally rose to 828 million in 2021, an increase of about 46 million since 2020, and 150 million since the outbreak of coronavirus.
‘Shock after shock’
Speaking at a virtual briefing at UN Geneva to flag a series of policy recommendations that countries could follow to withstand the global food, fuel and finance crisis, UNDP Senior Economist George Gray Molina noted that many countries had faced 36 months of “shock after shock after shock”: first COVID-19, then Russia’s invasion of Ukraine on 24 February, the latter in particular shaking global food and energy supplies and sparking an inflationary surge.
“With COVID, what we saw is effects that worked through labour markets, lockdowns, and income, that was slowly cumulative but had a strong impact over time,” said Mr Molina. “Official estimates are about 125 million people falling into poverty over about 18 months…what we found right now is that three months of inflation have drawn about 71 million people into poverty.”
Failure to take decisive and radical action by governments risked sparking widespread unrest, UNDP chief Steiner suggested.
Pain on the streets
“Very quickly, we might see also with the troubling economic outlook a situation where for many countries the patience and the ability of people to cope with this reality runs out. And as I’ve often said, when politics moves out of our parliaments, out of government, onto the streets, we are in a fundamentally different situation. We are very vulnerable at this moment to see these kinds of developments happen in many more countries.”
Outlining some of the finance policy recommendations that are detailed in the new UNDP report – Tackling The Cost-Of-Living Crisis: Policy Responses to Mitigate Poverty and Vulnerability around the World – Mr. Steiner insisted that it might be possible for some countries to tackle runaway inflation without resorting to the “blunt instrument” of raising interest rates.
“There is potential through the multilateral investment banks for example by paying in more capital, to allow them to provide through targeted lending and crisis-response measures,” he said, adding that the International Monetary Fund (IMF) could also be involved in this process.
There were “ways and means by which countries can address more specifically their needs”, the UNDP Administrator continued, that did “not necessarily have to be in contradiction to the inflationary pressure measures” now being put in place by central banks.
‘Drastic’ speed
According to the UNDP report, the impact of the global food, fuel and finance crisis on global poverty has been “drastically faster” than the shock of the COVID-19 pandemic.
Analysis of 159 developing countries globally indicated that price spikes in key commodities were already having “immediate and devastating impacts on the poorest households.
Clear hotspots have emerged in the Balkans, the Caspian Sea region and Sub-Saharan Africa (in particular the Sahel region), according to UNDP.
Global Crisis Response Group
This report also zooms in on the insights provided by the two briefs of the UN Secretary-General’s Global Crisis Response Group on the ripple effects of the war in Ukraine.
Key to the global recovery will be the recognition that it is in everyone’s interest to help countries that are grappling with depleted fiscal reserves and high levels of sovereign debt, as well as rising interest rates on global financial markets, Mr. Steiner insisted.
“Unprecedented price surges mean that for many people across the world, the food that they could afford yesterday is no longer attainable today,” says UNDP Administrator, Achim Steiner. “This cost-of-living crisis is tipping millions of people into poverty and even starvation at breathtaking speed and with that, the threat of increased social unrest grows by the day.”
Among the UNDP report’s strongest takeaways is the warning that “entire developing countries” risk decoupling from the global economy permanently.
Internationally-agreed measures “can take the wind out of this vicious economic cycle” and save lives and livelihoods, insisted Mr. Steiner, whose agency also recommended “targeted cash transfers” as being more equitable and cost-effective than blanket energy subsidies, which “disproportionately benefit wealthier people”.
But seismic shifts in the international financial system will also be necessary to ensure that low and middle-income countries can recover, the UNDP Administrator suggested. “You also have to be smarter about it and the IMF originally put together some of the responses to COVID; most developing countries at the end of the day did not dare to borrow against those measures because immediately the rating agencies would downgrade them.”
Editor’s take note: Read through the latest developments in this tale right here.
With freezing weather sweeping into Texas late this 7 days, subsidiaries for a main pipeline business are threatening to lower off pure gas to the state’s most significant electric power generator — which could influence the energy source for hundreds of hundreds of prospects — about a economic dispute stemming from final February’s lethal wintertime storm.
Vistra Corp. subsidiary Luminant on Wednesday requested the Railroad Fee of Texas, which regulates the state’s oil and gasoline business, to reduce Electrical power Transfer LP from chopping off gasoline to 5 Vistra energy crops, which create enough electric power to electricity 400,000 Texas homes, enterprises and critical infrastructure these types of as hospitals and faculties.
Railroad Commission officers have not responded to queries about irrespective of whether the company will act.
The providers under Power Transfer, the pipeline enterprise, have informed Vistra that gas will quit flowing to five Vistra electrical power plants on Monday unless of course Vistra pays Power Transfer $21.6 million, in accordance to the filing.
The “threat to terminate service in the center of winter season is illegal and grossly irresponsible and need to be prohibited by this Commission,” Vistra explained in the grievance to the Railroad Commission.
Vistra known as the move by Vitality Transfer, run by billionaire Kelcy Warren, “a kind of professional extortion.”
Railroad Fee Chair Wayne Christian expressed his worry Thursday on Twitter: “I am paying out shut focus to this. @EnergyTransfer and @VistraCorp ought to arrive with each other to take care of this problem so that no Texans eliminate fuel or electric powered assistance in the course of cold weather. Do what’s proper for Texans.”
All through very last year’s winter storm — which caused the close to-total collapse of the state’s electricity grid, still left thousands and thousands devoid of ability for days and induced hundreds of fatalities — Vistra invested approximately $1.5 billion for purely natural gasoline, “twice its prepared organic fuel cost to gasoline its whole Texas fleet for a full 12 months,” the submitting claimed. Vistra paid out Strength Transfer additional than $600 million during the storm, “which is far more than 96{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of all quantities invoiced by [Energy Transfer].”
The value for organic gas soared throughout the storm, when a combination of freezing temperatures throughout the state and skyrocketing need shut down natural fuel facilities and ability crops, which rely on every single other to retain energy flowing.
While numerous providers shed money throughout the storm, Electricity Transfer designed $2.4 billion. Electricity Transfer did not straight away reply to a ask for for remark.
A coalition of point out fiscal officers, many from resource-rich states and all Republicans, is pushing back from local climate change-combating banking institutions that have adopted corporate procedures chopping off funding for the coal, oil, and organic gasoline industries.
“These industries – which are engaged in properly authorized actions – provide employment, paychecks and rewards to countless numbers of tricky-operating people in our states and we will not stand idly by and permit our peoples’ livelihoods to be ruined to progress a radical social agenda,” claimed West Virginia Condition Treasurer Riley Moore. “I’m not heading to let woke capitalism wipe out the careers and the overall economy of West Virginia.”
Capital paying by U.S. exploration and manufacturing (E&P) companies is projected to improve 23.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} yr/year in 2022.
Under the auspices of the United Nations, the world wide Web-Zero Banking Alliance consists of banks that commit “to aligning their lending and investment decision portfolios with web-zero emissions by 2050,” according to the alliance website. As of Dec. 21, U.S. financial institutions that were users of the alliance provided Amalgamated Bank, Financial institution of The us, Citi, J.P. Morgan Chase & Co., Morgan Stanley, The Goldman Sachs Team Inc., and Wells Fargo & Co.
In accordance to a 2021 report by the Rainforest Motion Community, the Sierra Club, Oil Alter Worldwide, and other activist teams, the higher than banking institutions – with the exception of Amalgamated and Goldman Sachs – alongside one another have furnished virtually $1.1 trillion in financing to oil, gasoline, and coal shoppers considering the fact that 2016.
Moore spearheaded the development of a coalition of point out economical officers in 15 states who have pledged to “scrutinize or likely curtail long run business” with banking companies that have procedures in opposition to funding for the coal, oil, and gas sectors. Moore instructed NGI that this kind of boycotts are tantamount to a presumption of guilt for the industries.
“Here’s the crux of the concern: How can I get tax bucks produced from the coal and fuel industries and then give” that revenue to financial institutions opposing individuals industries crucial to the point out, mentioned Moore.
In an open letter dealt with to the U.S. banking sector, the condition treasurers, auditors, and comptrollers pledged to “take concrete measures inside our respective authority to select economic institutions that assistance a cost-free marketplace and are not engaged in destructive fossil gasoline sector boycotts for our states’ monetary services contracts.”
Associates of the coalition mentioned they signify more than $600 billion in general public property beneath administration. Joining West Virginia in the multistate work are Alabama, Arizona, Arkansas, Idaho, Kentucky, Louisiana, Missouri, Nebraska, North Dakota, South Carolina, South Dakota, Texas, Utah, and Wyoming.
“Corporate agendas that attack our oil and fuel sector, which has been so crucial to our condition, should be called out…I will stand with other fiscal officers to battle against these occupation-killing insurance policies that hurt our economic climate,” claimed Louisiana Treasurer John Shroder.
Moore instructed NGI that his peers in another source-rich point out, Alaska, have expressed curiosity in the coalition.
“It sounds like they’ll be part of as well,” he mentioned. With additional states, “I think it’s going to expand and I assume we’re likely to have much more leverage.”
A Amount Playing Area
Coalition customers reported they “simply want monetary institutions to evaluate fossil fuel businesses as other lawful organizations – without having prejudice or choice.”
Moore informed NGI that states “contract out in essence all of our economic providers and have all of our assets parked” in financial institutions. Though agreement frameworks differ by state, Moore claimed that in West Virginia the point out can frequently opt out of contracts with 30 days of notice.
“We are switching our contracting process” in West Virginia, stated Moore. Banking companies are “going to have to be equipped to certify they are not going to boycott the fossil gas market. To be distinct, what we’re endeavor in this article is our choices in the current market. I’m not a current market regulator. I’m a marketplace participant…and these are West Virginia’s tastes in the industry.”
[In the Know: Better information empowers better decisions.Subscribe to NGI’s All News Access and gain the ability to read every article NGI publishes daily.]
Utah Point out Auditor John Dougall said banks and investors need to focus on how well businesses can potentially “provide elevated shareholder benefit, somewhat than favoring sure partisan agendas, especially at the price of shareholders. Energy organizations of all styles need to have unfettered access to cash and lending marketplaces.”
Arizona Treasurer Kimberly Yee mentioned “it is significant to carefully scrutinize the monetary establishments Arizona does business enterprise with, specially those that are engaged in politically inspired assaults on legit corporations, which are essential to our nation’s financial system and electrical power independence.”
The 15-condition coalition issued its letter to the banking market in November. Moore explained to NGI last week that his office has because obtained feed-back from banking institutions. Some of the banking companies have said “they are not going to get concerned in what I perspective as a boycott/denial of access to cash for the fossil gasoline marketplace,” explained Moore.
He added that banks opting in opposition to earning oil, gasoline, and coal organizations financing pariahs might also choose to compete for big condition banking contracts.
“These are sweet contracts,” Moore mentioned, outlining that they are low-hazard and “look fantastic on a balance sheet.”
Moore said he hopes the coalition’s endeavours finally will encourage banks to “come to their senses and…want to act like a bank…and be associated in funding. If they want to get involved in politics, they are heading to find out it’s a full-make contact with activity.”
Earlier this yr, Riley and other point out fiscal officials sent a letter to John Kerry, the U.S Department of State’s unique presidential envoy for climate, expressing “deep concern” amid experiences that he and other Biden administration officers have been “privately pressuring U.S. banking companies and financial institutions to refuse to lend to or spend in coal, oil, and organic gasoline organizations.”
Samantha Galvez, press secretary for Pennsylvania’s GOP Treasurer Stacy Garrity, explained to NGI that Garrity “is strongly opposed to the Biden administration’s initiatives to pressure monetary establishments into divesting from coal, oil, and all-natural gas providers.”
On Dec. 6, Garrity sent a letter to economic establishments carrying out business with Pennsylvania’s Treasury Department advising them her division “has a powerful interest” to know irrespective of whether establishments it will work with are “engaged in strength policies harmful to the state’s financial state and, consequently, its residents.”
Citing U.S. Strength Information Administration figures, Garrity observed that Pennsylvania is the United States’ next-major organic fuel producer, its 3rd-major coal producer, its 2nd-premier coal exporter, and the third-premier web strength supplier to other states.
As a outcome, Garrity wrote that her office will “carefully assess its relationships” with monetary institutions with which it does company. She reported that an illustration of such an assessment would be obtaining establishments entire “due diligence questionnaires” to gauge whether they “are engaged in insurance policies which would be dangerous to the dependable strength firms which are so important to the inhabitants of Pennsylvania.”
For their part, officials with U.S. oil and gas business groups have pointed out the sector is advancing initiatives to suppress its emissions. E&P and midstream providers are also significantly trying to get environmental certification for purely natural fuel.
Market participants are trying to make sense of the recent stock market volatility. They want to know why it happened, why was there a significant drop in so many growth stocks, and was this recent sharp pullback just a shakeout before a year-end rally or the start of a bigger correction? Of course, no one knows the answer to the last question, but I’m leaning towards a year-end rally for the following reasons.
Technicals – During the recent drop, the S&P 500 and Nasdaq Composite found support around their 50-day moving averages. Since this is traditionally an area of institutional support, it is important to note that the large institutions were buying near these levels.
Chart is provided by MarketSmith.
Strong Seasonality — November, December, and January are historically three of the stronger months of the year. Specifically, the second half of December tends to be strong, as seen in the chart below (courtesy of @RyanDetrick)
Stock Leadership — It’s hard to get bearish when many Mega Cap growth leaders such as Microsoft (MSFT), Alphabet (GOOG, GOOGL) and Tesla (TSLA) continue to hold logical support levels. In addition, Apple (AAPL) is the most widely held stock and it surged to an all-time high this week. Finally, I consider Semiconductors as a true indicator of the economy, and many stocks in this sector are approaching or already at new highs.
Sentiment — Many sentiment measures reached extreme bearish levels last week. A casual observer might not understand why this happened with the major indexes near all-time highs, but beneath the surface, it has been a bloodbath. Most people don’t just own the index. They own growth stocks, and especially get married to the ones that have greatly appreciated in price over the past year or two. When these stocks become “too crowded,” the market conveniently destroys these names, and that kills the morale of many traders.
This leads me to the first two questions I posed at the beginning of this article. The selloff was partially related to uncertainty fears around the new Omicron variant, and it was also a normal pullback to shake out some of the excess created in the prior six weeks. However, the main reason had to do with Fed Chair Powell changing his tune from dovish to more hawkish.
Since early April 2020, I’ve been writing articles to stay bullish because of the insane amount of liquidity the Fed was pumping into the system. In the spring of 2020, the Fed made more Treasury purchases in the six weeks following the pandemic than they did in the nine years combined between 2009-2018. They continued with $120 billion in monthly bond purchases, but now need to reduce or “taper” these purchases. In last week’s testimony to Congress, Fed Chair Powell discussed speeding up the taper and the market interpreted his language as hawkish and started to price in two to three rate hikes in 2022. There’s a reason why Wall Street legend Martin Zweig created the phrase “Don’t fight the Fed.”
Many people are concerned that we might see a all of 2018 scenario. In October 2018, Fed Chair Powell said he planned on raising rates 3 to 4 times in the upcoming year. The market clearly could not handle this and then proceeded to drop 20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in the following few months. In January 2019, Powell took back his words and that ended the market correction. I don’t see this scenario happening now because even if the Fed tapers more quickly than people expect, they are still providing a low-interest rate and equity-friendly environment. In fact, Powell never really has to raise rates. He can just say that he will, watch the market drop, and then retract his words.
Bottom line, the strong technicals combined with the favorable seasonality and extremely negative sentiment could be the fuel needed for a year-end rally. As far as 2022 goes, we’ll worry about that next year.
I can be reached at: jfahmy@zorcapital.com
Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained on this site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned on this site. The stocks presented are not to be considered a recommendation to buy any stock. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.
Deal is designed to accelerate eCombustible Energy’s go-to-market strategy
eCombustible Energy has developed a customizable hydrogen-based fuel production technology that provides on-site fuel delivery under long-term fuel supply agreements
eCombustible Energy’s fuel technology is applicable to a large variety of stationary thermal applications, requires little to no modification to customers’ existing thermal power equipment (e.g., boiler or kiln), and the eCombustible fuel contains no carbon
eCombustible Energy fuel production modules are built, installed, owned, operated, and maintained onsite by eCombustible Energy
Global organizations in the mining, steel, tile, beverage, hospitality and tire sectors have shown strong interest in the eCombustible fuel solution, with several under contract and a number under MOU to integrate eCombustible fuel into their operations
Securityholders of eCombustible Energy to receive shares of common stock with a value of $805 million, subject to adjustment, plus an earnout of up to 59 million additional shares
Combined company expected to trade on Nasdaq under the symbol “ECEC”; the transaction is subject to regulatory and shareholder approval and other customary closing conditions
MMIAMI, FL / ACCESSWIRE / November 24, 2021 / Yesterday, Benessere Capital Acquisition Corp. (Nasdaq:BENE), a special purpose acquisition company (“Benessere”), and eCombustible Energy LLC, a leading innovator and provider of customizable hydrogen-based fuel for thermal industrial applications (“eCombustible Energy”), announced that the companies have entered into a definitive business combination agreement, providing for a business combination that will result in eCombustible Energy becoming a public listed company, subject to regulatory and stockholder approval and other customary closing conditions. Upon completion of the proposed transaction, the combined company is expected to operate under the name eCombustible Energy Corp. and list on Nasdaq Capital Market under the ticker symbol “ECEC”.
Founded in 2010 by Miami-based entrepreneur and investor Jorge Arevalo, eCombustible Energy offers a long-term fuel supply solution that is designed to provide the world’s most fossil fuel-dependent industries with a fuel that is carbon-free, cost-competitive, and requires little to no modification to existing customer equipment. The efficacy of its hydrogen-based fuel, eCombustible, has been validated through testing and independent assessments by third-party engineering firms and experts.
“We believe a carbon-free future will best be achieved on a win-win basis, with fossil fuel-reliant industries being empowered to transition to clean and renewable energy solutions without crippling investments,” said eCombustible Energy CEO, Jorge Arevalo. “This business combination is intended to fuel the acceleration and adoption of eCombustible, and we are confident that we can help many of the world’s largest industrial companies’ transition to our carbon-free fuel and advance ESG objectives in a seamless, viable, and impactful way.”
Benessere is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with technology-focused, middle-market and emerging-growth companies in North, Central and South America. Led by CEO Patrick Orlando, Benessere was drawn to eCombustible Energy given the immense need for and potential of decarbonizing industries.
“The transition away from carbon containing fuel towards hydrogen and other clean fuel technologies has been underway for several years; however, the applicability of hydrogen as an alternative is nascent. eCombustible has not only focused on producing hydrogen efficiently but also making hydrogen a true solution for applications including fixed thermal applications. Thermal energy is foundational to a multitude of industrial applications and we believe eCombustible presents a unique solution with the potential to accelerate the transition to a lower carbon energy future,” said Patrick Orlando, CEO of Benessere. “We are excited to work with the eCombustible Energy team in an attempt to enhance value across the company, industry, public shareholders and society.”
For more information about eCombustible Energy, please visit www.ecombustible.com.
Transaction Overview
Benessere raised $115 million in its initial public offering earlier this year, and approximately $116.5 million is now held in a trust account for the benefit of Bennessere’s public stockholders. Under the terms of the proposed transaction announced today, a newly formed successor to Benessere will issue shares of its common stock with an aggregate value of $805 million, subject to adjustment, to current securityholders of eCombustible Energy upon the closing of the proposed transaction. These eCombustible Energy securityholders may also receive, subject to the terms of the business combination agreement, up to an additional 59 million shares of Benessere common stock based on the daily volume weighted average share price of the combined company’s common stock in any 20 trading days within a 30 trading day period beginning on the closing of the transaction and ending on the 30-month anniversary of the closing, as follows: 29.5 million shares if the share price exceeds $12.50 prior to such 30-month anniversary and an additional 29.5 million shares if the share price exceeds $15.00 prior to such 30-month anniversary.
The transaction is subject to approval by stakeholders of Benessere and eCombustible Energy and other customary closing conditions, including applicable regulatory approvals. Additional information about the transaction will be provided in a Current Report on Form 8-K to be filed with the Securities and Exchange Commission (“SEC”) and available at www.sec.gov. The description of the business combination contained herein is only a summary and is qualified in its entirety by reference to the definitive business combination agreement. In addition, Benessere intends to file a registration statement on Form S-4 with the SEC (the “Registration Statement”), which will include a proxy statement/prospectus of Benessere, and will file other documents regarding the proposed business combination with the SEC.
Additional Information and Where to Find It
In connection with the business combination agreement and the proposed business combination, Benessere intends to file with the SEC a Registration Statement, which will include a proxy statement/prospectus. Benessere’s stockholders and other interested persons are advised to read, when available, the preliminary proxy statement/prospectus and the amendments thereto and the definitive proxy statement/prospectus and documents incorporated by reference therein filed in connection with the business combination, as these materials will contain important information about Benessere, eCombustible Energy, the merger agreement and the business combination. When available, the definitive proxy statement/prospectus and other relevant materials for the business combination will be mailed to stockholders of Benessere as of a record date to be established for voting on the business combination. Stockholders of Benessere will also be able to obtain copies of the Registration Statement, the preliminary proxy statement/prospectus, the definitive proxy statement/prospectus and other documents filed with the SEC that will be incorporated by reference therein, without charge, once available, at the SEC’s web site at www.sec.gov, or by directing a request to: Benessere Capital Acquisition Corp., 78 SW 7th Street, Unit 800, Miami, FL 33130.
Participants in the Solicitation
Benessere, eCombustible Energy and their respective directors, executive officers, other members of management and employees may be deemed participants in the solicitation of proxies from Benessere’s stockholders with respect to the proposed business combination. Investors and securityholders may obtain more detailed information regarding the names and interests in the business combination of Benessere’s directors and officers in Benessere’s filings with the SEC, including the Registration Statement, and such information with respect to eCombustible Energy’s directors and executive officers will also be included in the Registration Statement.
Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws with respect to the proposed business combination between Benessere and eCombustible Energy, including without limitation statements regarding the anticipated benefits of the business combination, the anticipated timing of the closing of the business combination, the implied enterprise value and pro forma ownership, future financial condition and performance of eCombustible Energy and the combined company after the closing and expected financial impacts of the business combination, the satisfaction of closing conditions to the business combination, the level of redemptions of Benessere’s public stockholders, the potential benefits of eCombustible Energy’s solution for customers and potential customers, and the products and markets and expected future performance and market opportunities of eCombustible Energy. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result” and similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties.
Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) the risk that the business combination may not be completed in a timely manner or at all, which may adversely affect the price of Benessere’s securities, (ii) the risk that the business combination may not be completed by Benessere’s business combination deadline and the potential failure to obtain an extension of the business combination deadline if sought by Benessere, (iii) the failure to satisfy the conditions to the consummation of the business combination, including the approval of the business combination agreement by the stockholders of Benessere, (iv) the occurrence of any event, change or other circumstance that could give rise to the termination of the business combination agreement, (v) the failure to achieve the minimum amount of cash available following any redemptions by Benessere stockholders, (vi) redemptions exceeding a maximum threshold or the failure to meet The Nasdaq Stock Market’s initial listing standards in connection with the consummation of the contemplated transactions, (vii) the effect of the announcement or pendency of the business combination on eCombustible Energy’s business relationships, operating results, prospects and business generally, (viii) risks that the proposed business combination disrupts current plans and operations of eCombustible Energy, (ix) the outcome of any legal proceedings that may be instituted against eCombustible Energy or against Benessere related to the business combination agreement or the proposed business combination, (x) changes in the energy markets in which eCombustible Energy competes, including with respect to its competitive landscape, technology evolution or regulatory changes, (xi) changes in domestic and global general economic conditions, (xii) the risk that eCombustible Energy is not able to recognize revenue for its products or secure additional contracts that generate revenue, (xiii) risk that eCombustible Energy may not be able to execute its growth strategies; (xiv) risks related to the ongoing COVID-19 pandemic and response, (xv) risk that eCombustible Energy may not be able to develop and maintain effective internal controls, (xvi) costs related to the business combination and the failure to realize anticipated benefits of the business combination or to realize estimated pro forma results and underlying assumptions, including with respect to estimated stockholder redemptions, (xvii) risks related to competition in the markets in which eCombustible Energy intends to compete, (xviii) risks related to the early stage of eCombustible Energy’s business, and (xix) and those factors discussed in Benessere’s filings with the SEC and that that will be contained in the Registration Statement relating to the proposed business combination. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties that will be described in the “Risk Factors” section of the Registration Statement and other documents to be filed by Benessere from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and while Benessere and eCombustible Energy may elect to update these forward-looking statements at some point in the future, they assume no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. Neither of Benessere or eCombustible Energy gives any assurance that Benessere or eCombustible Energy, or the combined company, will achieve its expectations.
No Offer or Solicitation
This press release shall not constitute a solicitation of a proxy, consent, or authorization with respect to any securities or in respect of the proposed business combination. This press release shall also not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering 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.
About Benessere Capital Acquisition Corp.
Benessere Capital Acquisition Corp. (Nasdaq:BENE) is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. Benessere’s strategy is to identify and complete business combinations with technology-focused middle market and emerging growth companies in North, Central and South America. For more information, please visit www.benespac.com.
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MEDIA CONTACT Isys Caffey-Horne Isys@stripetheory.com 404-368-7070
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