nuclear startup deep fission goes public in a curious spac

Deep Fission Goes Public via Reverse Merger

Deep Fission, a nuclear energy startup, revealed on Monday its transition to a publicly traded company through a reverse merger. This transaction has provided the company with $30 million in capital.

Despite current market conditions, this move echoes the investment activity seen in 2021.

Innovative Reactor Design

The company's core proposal centers around the construction of compact, cylindrical nuclear power plants. These reactors are designed to be lowered into boreholes reaching a mile deep and 30 inches in diameter.

By positioning the reactors underground, Deep Fission aims to address several challenges associated with conventional nuclear facilities. These include mitigating meltdown risks and enhancing security against potential acts of terrorism.

The 15-megawatt reactors utilize pressurized water for cooling, a technology already proven in nuclear submarines and numerous existing power plants.

Strategic Partnerships and Government Support

Earlier this year, Deep Fission established a partnership with Endeavor, a data center developer, to construct 2 gigawatts of underground reactors.

As recently as April, the startup was actively seeking $15 million in seed funding. Subsequently, in August, Deep Fission was chosen, along with nine other nuclear fission startups, to participate in the Department of Energy’s Reactor Pilot Program.

This program offers a streamlined permitting process, accelerating the development and deployment of advanced nuclear technologies.

Details of the Reverse Merger

The reverse merger involved Surfside Acquisition Inc., a four-year-old company. The offering was priced at $3 per share, a figure lower than the typical $10 target for Special Purpose Acquisition Companies (SPACs).

The resulting entity will continue operating under the Deep Fission name. While shares are not currently being traded, the company intends to list on the OTCQB market.

Financial Implications and Future Outlook

The specifics of the SPAC arrangement – including the share price and market selection – indicate potential difficulties in securing capital from investors. The company had previously received $4 million in initial funding last year.

The funds generated from the merger extend Deep Fission’s operational runway beyond what the seed round would have allowed. However, it also introduces the financial burden of SEC reporting requirements for a relatively small company operating in a capital-intensive industry.

Deep Fission is currently targeting the commencement of its first reactor operations by July 2026.