XCF to Buy Paramount Renewable Fuel Plant, Targets $40M EBITDA
SAFX sits 58% above its 52-week low of $0.119 on elevated volume (3.3× avg).
Summary
XCF signed a definitive agreement to acquire the Paramount, California renewable fuel facility through a new subsidiary, New Rise Renewables Paramount, for a $10M cash purchase price joined by a $50M deferred payment due 36 months after closing, with interest accruing after 24 months. The site adds roughly 50 million gallons a year of SAF, renewable diesel and renewable naphtha capacity near LAX, and management targets $600M gross product sales, $100M net revenue and $40M EBITDA after a 9-12 month restart that will cost about $30M. Closing must occur by December 15, 2026. The scale of the targets is large relative to a company that just posted an 89% revenue collapse, a $238M working capital deficit and a going concern warning in its Q2 10-Q, and that has been funding itself through discounted borrowings and heavy share issuance. Execution and financing of the $30M restart are the real questions, not the strategic logic.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — The $10M cash purchase price is joined by a $50M deferred payment due 36 months after closing, with interest accruing after 24 months; closing must occur by December 15, 2026.
At the time of this announcement, SAFX was trading at $0.19 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $77.8M. The 52-week trading range was $0.12 to $1.27. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: ACCESS Newswire.