HOUSTON--(BUSINESS WIRE)--Verde Clean Fuels, Inc. (“Verde” or, the “Company”) (NASDAQ: VGAS) announced today the closing of the previously announced $50 million equity investment by Cottonmouth Ventures, LLC ("Cottonmouth"), a wholly-owned subsidiary of Diamondback Energy, Inc. (“Diamondback”) (NASDAQ: FANG). The investment consists of the purchase of 12.5 million shares of Verde’s Class A common stock by Cottonmouth at a purchase price of $4.00 per share. The investment represents the second investment by Cottonmouth in Verde over the past two years, for a total investment of $70 million, making Cottonmouth the second largest shareholder of Verde.
Proceeds from the investment are expected to be used to further the development and construction of potential natural gas-to-gasoline production plants and for other general corporate purposes. The proposed plants to be jointly developed by Verde and Cottonmouth would produce fully-refined gasoline utilizing Verde’s patented (STG+®) process from associated natural gas feedstock supplied from Diamondback's operations in the Permian Basin.
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