![]() That said, SPACs are the 2020 version of IPOs and ICOs. The lawsuit is currently just that, a suit which has been raised. It’s entirely possible that they have a bunch of employees who just don’t use LinkedIn, although that’s unusual for tech companies in my experience. I don’t have any insight into funding that DG Fuels may have. I don’t know if the claims made in the lawsuit are accurate. I had no insights into claims that it made to investors about projected revenues.Īnd to be clear, I have no knowledge of DG Fuels or Energy Vault beyond what is publicly available on the internet. Prescient? No, my assertion was that the lack of technical viability and massive carbon debt of the storage technology were the problems, and that that was where due diligence failed. ![]() The headline of my second article was Energy Vault Claims Highlight The Lack Of Due Diligence In Cleantech SPACs. I then went back to ignoring it, at least until someone pointed this lawsuit out to me. The combination led me to analyze the technology in its initial incarnation - deeply absurd - and its purported later incarnation - imagine a massive 25-story heavy steel building hoisting multi-ton blocks up to the top couple of floors and not collapsing under the weight of its hubris - and to publish a couple of articles. ![]() Then Energy Vault secured a reverse-takeover special purpose acquisition company (SPAC) deal that got it onto the stock market at around $2.9 billion, subsequently dropping to $1.9 billion. However, due to my publications on low-carbon transformation, including end game challenges such as grid storage, aviation refueling, and marine refueling, people kept bugging me about it. ![]() I had ignored Energy Vault for a couple of years, as a quick initial glance had it coated in so many red flags that it was clearly doomed to failure. Its LinkedIn profile suggests they are going to turn old railway ties into diesel fuel, while their website indicates jet fuel. Its website shows more people - 4 executives and 15 members of the advisory board, a not unusual condition for an early stage company. Per LinkedIn, it has only two executives, three advisory board members, and no other employees at present. This would constitute a violation of securities laws in the US, per the announcement.ĭG Fuels is an existing entity that is promising to build sustainable ground or aviation fuels manufacturing facilities with a minor extension of the standard Fischer–Tropsch process and seeking DOE loan guarantees, with the initial facility proposed for Louisiana. The lawsuit asserts that DG Fuels has no revenue and has nothing in operation at present, and that this was not disclosed to investors. Per the announcement, Energy Vault paid a million dollars to DG Fuels, and in return DG Fuels agreed to buy $520 million worth of Energy Vault products. It appears as if Energy Vault has challenges in addition to its ineffective, expensive, carbon-debt laden, mechanical failure of an electricity storage solution.Ī legal firm, Hittelman Strunk, has filed a class action lawsuit on behalf of investors due to an alleged stock price inflation scheme.
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