VIKASA CAPITAL ANNOUNCES CREATION OF NATURAL RESOURCES SPAC
|Earlier this year, VIKASA Capital partnered with The Racon Companies to create a natural resources-focused special purpose acquisition company, the Racon Natural Resources SPAC. Recognizing the ongoing global need for the natural resources which underpin modern society, and growing distress in natural resource companies, VIKASA and Racon conceived an investment strategy to provide liquidity to distressed energy, clean technology, and rare earths minerals assets utilizing the advantages of the special purpose acquisition company structure. With an ESG-driven focus on operational sustainability and financial stewardship, the Racon Natural Resources SPAC is on target for a $100 million capital raise with an IPO in the fourth quarter of 2020.
Guided by a world-class Board of Directors, Racon Natural Resources intends to create a yield-focused public company with the ability to scale through investment of excess cash flow in strategic acquisitions. The company expects to initially acquire oil and natural gas assets and implement carbon optimized operations to provide near-term capital appreciation and sustainable long-term cash flow which will support dividends and growth. Additionally, Racon will seek investments in environmental technologies which clean land, air, and water and in the rare earth minerals and metals used for energy storage and electronic devices. Together, these three verticals encompass the demand for energy to clean and connect our planet while delivering value to our shareholders through consistent yield and capital appreciation.
VIKASA is proud to be the capital sponsor for Racon Natural Resources as the acquisition team, led by CEO David Ferris, focuses their efforts over the next 18-months on finding the initial acquisition opportunity (referred to as the “business combination”) that will propel Racon forward. The company is built for optionality and will evaluate acquiring an asset, a company, or providing liquidity in exchange for a control position. The recent distress in the natural resources market has created a generational opportunity to acquire distressed assets and Racon is well-positioned to meet the energy, rare earths, and minerals needs for our low-carbon future.