Canada-based energy company Greenfire Resources, Inc., and M3-Brigade Acquisition III Corp., a New York Stock Exchange-listed "blank check company" also known as MBSC, announced the forming of a business deal that values Greenfire at $950 million, according to a release published on Thursday.
"We are excited to partner with the Greenfire team to support their growth and success," said MBSC Executive Chairman Mohsin Y Meghji. "The Greenfire team has meaningful experience managing Canadian oil sands assets and we are excited to be able to provide MBSC investors with the opportunity to invest in Greenfire at this valuation."
The deal is expected to close in the second quarter of 2023. After said point, Greenfire Resources Inc., currently an Ltd., will become the parent company of both Greenfire and MBSC. The deal was unanimously recommended and approved by the board of directors of both Greenfire and MSBC. Greenfire's current plans include reducing bottlenecks at the company's Hangingstone Expansion location, as well as increasing oil production from 22,000 barrels per day to 35,000.
"Greenfire has successfully assembled some of the highest quality oil sands assets in the industry and solidified our position as a leading intermediate oil sands developer," said Greenfire President and CEO Robert Logan. "Supporting the safe, responsible and efficient development of our world-class assets is an incredible team of dedicated and talented people. The investment by MBSC is a strong vote of confidence in our plan to deliver profitable growth as we focus on maximizing shareholder and stakeholder value."