Montana
Montana Technologies Announces First Quarter 2024 Results
RONAN, Mont., May 20, 2024 /PRNewswire/ — Montana Technologies Corporation (NASDAQ: AIRJ) (“Montana Technologies”), the developer of AirJoule®, a transformational atmospheric thermal energy and water harvesting technology, today announced its first quarter results.
Key Highlights
- Closed business combination (the “Business Combination”) with Montana Technologies LLC (“Legacy Montana”) and renamed the combined company “Montana Technologies Corporation”
- $50 million minimum cash condition was exceeded by securing private investments led by Carrier Global Corporation (“Carrier”), Rice Investment Group, and GE Vernova, among other third parties (the “Capital Raise”)
- Upon completion of the Business Combination, Montana Technologies’ common stock and warrants began trading on the Nasdaq Capital Market under new ticker symbols “AIRJ” and “AIRJW,” respectively
- Formed a joint venture with GE Vernova to advance and commercialize transformational air conditioning and atmospheric water harvesting products featuring AirJoule® technology
- The joint venture is led by Bryan Barton, formerly the Senior Director of Marketing, Ventures, and Incubation at GE Vernova
- Entered into joint commercialization agreement term sheets with Carrier to develop and commercialize the AirJoule® dehumidifying and cooling technology for heating, ventilation, and air conditioning (“HVAC”) solutions in the Americas, Europe, India, and the Middle East
- Ended the quarter with $37 million of cash on the balance sheet
Executive Commentary
Matt Jore, Chief Executive Officer of Montana Technologies stated, “We are excited to have completed our Business Combination and for Montana Technologies to be listed on Nasdaq. This represents a critical milestone for the company and will enable us, along with our strategic partners, to focus on developing and deploying our atmospheric thermal energy and water harvesting systems worldwide as a response to climate change and water scarcity. In addition, the recently announced partnerships with GE Vernova and Carrier showcase how our proprietary AirJoule® technology has been embraced by industry leaders; these partnerships will open our company and technology into two enormous target markets, HVAC and atmospheric water harvesting. We believe these actions place the company on a path to create a more equitable and sustainable future by fundamentally changing how we optimize increasingly scarce energy and water resources to create a better quality of life for all.”
Pat Eilers, Executive Chairman, stated, “Montana Technologies met the core criteria of a clean tech solutions provider we were searching for when we started the process with Power & Digital Infrastructure Acquisition II Corp. Montana Technologies, through its proprietary AirJoule® units, has created a transformational technology that provides significant energy efficiency gains in HVAC and atmospheric water harvesting applications, and it addresses two of the world’s most problematic issues, energy efficiency and water scarcity. We are thrilled to have completed this transaction, and I am excited to take on the role of Executive Chairman. I look forward to partnering with our newly announced management team to deliver value in the public markets.”
Commercialization Agreement with Carrier
On January 8, 2024, Legacy Montana and Carrier, a global leader in intelligent climate and energy solutions, announced that they had entered into a binding term sheet related to a commercial collaboration to develop and commercialize the AirJoule® dehumidification and cooling technology. Subject to certain milestones, Legacy Montana granted Carrier the exclusive right to commercialize the AirJoule® technology into HVAC equipment in the Americas for a period of three years. Legacy Montana, acting through an affiliated joint venture, also provided Carrier with a non-exclusive right to commercialize the AirJoule® technology into HVAC equipment in Europe, India, and the Middle East.
Carrier also committed $10 million in growth equity to Legacy Montana, which was conditional upon the successful raise of at least $50 million in aggregate capital commitments. This condition was achieved with the successful Capital Raise that occurred in conjunction with the closing of the Business Combination in March 2024. Following the Business Combination, Montana Technologies expanded its Board of Directors with the appointment of Ajay Agrawal, Senior Vice President, Global Services, Business Development and Chief Strategy Officer at Carrier.
Joint Venture Agreement with GE Vernova
On January 29, 2024, Legacy Montana announced an agreement to form a joint venture with GE Vernova, a global leader in electrification, decarbonization, and energy solutions, to incorporate GE Vernova’s proprietary sorbent materials into systems that utilize Montana’s patented AirJoule® dehumidification, air conditioning, and atmospheric water harvesting technology.
The AirJoule® technology utilizes advanced sorbents and a self-regenerating pressure swing adsorption system to harvest thermal energy and pure water from air. GE Vernova, a recognized leader in the development of advanced materials technology for industrial systems, also seeks to deploy novel sorbent-based solutions that can enable a zero-carbon emissions future. Incorporating GE Vernova’s sorbent innovations into AirJoule® technology will enhance the performance of the joint venture’s energy-saving HVAC components as well as its atmospheric water harvesting products.
The joint venture closed on March 4, 2024. In addition, GE Vernova made an equity investment in Montana Technologies in conjunction with the Capital Raise. GE Vernova’s Advanced Research team is providing support to the joint venture’s R&D function, and Bryan Barton, formerly the Senior Director of Marketing, Ventures, and Incubation at GE Vernova, joined the joint venture full-time as its Chief Executive Officer. Dr. Barton is currently focused on expanding the joint venture team, advancing AirJoule® prototypes, and managing initial pilot projects with key potential customers for the HVAC components and atmospheric water harvesting products.
Completion of Business Combination
On March 14, 2024, Power & Digital Infrastructure Acquisition II Corp. (“XPDB”) completed the Business Combination with Legacy Montana, which was originally announced on June 5, 2023. Upon completion of the Business Combination, the combined entity was renamed “Montana Technologies Corporation,” and its common stock and warrants began trading on the Nasdaq Capital Market under new ticker symbols “AIRJ” and “AIRJW”, respectively.
In conjunction with the Business Combination, the Capital Raise, led by investments from Carrier, the Rice Investment Group, and GE Vernova, and, together with amounts from XPDB’s trust account, exceeded the $50 million cash required to satisfy the related closing condition.
Recent Additions to the Board of Directors and Management Team
As part of the XPDB shareholder approval of the Business Combination, XPDB shareholders elected the following individuals as directors of Montana Technologies:
- Pat Eilers, Founder and Managing Partner of Transition Equity Partners;
- Max Baucus, Former Ambassador to China and Six-Term United States Senator from the State of Montana;
- Paul Dabbar, Former Undersecretary of the Department of Energy for Science and current Chief Executive Officer and Co-Founder of Bohr Quantum Technology;
- Matt Jore, Chief Executive Officer of Montana Technologies;
- Stu Porter, Founder, Chief Executive Officer and Chief Investment Officer of Denham Capital; and
- Marwa Zaatari, Founder and Chief Scientist of D-Zine Partners
Subsequent to the completion of the Business Combination, the following individuals were appointed as directors of Montana Technologies:
- Ajay Agrawal, Senior Vice President, Global Services, Business Development and Chief Strategy Officer at Carrier Global Corporation; and
- Kyle Derham, Partner at Rice Investment Group
On May 7, 2024, Montana Technologies named Pat Eilers as Executive Chairman and appointed the following executives to its management team:
- Stephen Pang, Chief Financial Officer;
- Chad MacDonald, Chief Legal Officer; and
- Tom Divine, Vice President, Investor Relations and Finance
Quarterly Report on Form 10-Q
Montana Technologies’ financial statements and related footnotes will be available in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, which is expected to be filed with the Securities and Exchange Commission on May 20, 2024.
Investor Update Webcast
Montana Technologies has provided investors with an earnings call webcast. Interested parties may view the webcast by visiting the investor section of Montana Technologies’ website at www.mt.energy and clicking on the webcast link.
About Montana Technologies Corporation
Montana Technologies Corporation is a publicly traded company that holds the intellectual properties that make up the AirJoule® system, an atmospheric thermal energy and water harvesting technology that provides efficient and sustainable air conditioning and pure water from air. For more information, visit www.mt.energy.
Forward Looking Statements
The information in this press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding Montana Technologies and its future financial and operational performance, as well as its strategy, future operations, estimated financial position, estimated revenues, and losses, projected costs, prospects, plans and objectives of management are forward looking statements. When used in this press release, including any oral statements made in connection therewith, the words “could,” “may,” “will,” “should,” “anticipate,” “believe,” “intend,” “estimate,” “expect,” “project,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Montana Technologies expressly disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements herein, to reflect events or circumstances after the date of this press release.
Montana Technologies cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond Montana Technology’s control. These risks include, but are not limited to, our status as an early stage Company with limited operating history, which may make it difficult to evaluate the prospects for our future viability; our initial dependence on revenue generated from a single product; significant barriers we face to deploy our technology; the dependence of our commercialization strategy on our relationships with BASF, CATL, Carrier, GE Vernova, and other third parties history of losses, and the other risks and uncertainties described under the heading “Risk Factors” in our SEC filings including in our Registration Statement (See Risk Factors) on Form S-1 filed with the Securities and Exchange Commission (the “SEC”) on April 11, 2024. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Montana Technology’s SEC Filings are available publicly on the SEC’s website at www.sec.gov, and readers are urged to carefully review and consider the various disclosures made in such filings.
|
MONTANA TECHNOLOGIES CORPORATION |
||||||||
|
March 31, |
December 31, |
|||||||
|
2024 |
2023 |
|||||||
|
Assets |
||||||||
|
Current assets |
||||||||
|
Cash |
$ |
37,429,270 |
$ |
375,796 |
||||
|
Prepaid expenses and other assets |
486,338 |
126,971 |
||||||
|
Total current assets |
37,915,608 |
502,767 |
||||||
|
Operating lease right-of-use asset |
170,117 |
49,536 |
||||||
|
Property and equipment, net |
4,137 |
3,832 |
||||||
|
In-process research and development |
365,300,000 |
— |
||||||
|
Goodwill |
247,233,000 |
— |
||||||
|
Total assets |
$ |
650,622,862 |
$ |
556,135 |
||||
|
Liabilities and Stockholders’ equity (deficit) |
||||||||
|
Current liabilities |
||||||||
|
Accounts payable |
$ |
431,774 |
$ |
2,518,763 |
||||
|
Accrued transaction fees |
3,077,107 |
3,644,100 |
||||||
|
Other accrued expenses |
6,781,239 |
244,440 |
||||||
|
Due to related parties |
1,440,000 |
— |
||||||
|
Operating lease liability, current |
22,981 |
22,237 |
||||||
|
Total current liabilities |
11,753,101 |
6,429,540 |
||||||
|
Earnout Shares liability |
61,393,000 |
— |
||||||
|
True Up Shares liability |
286,000 |
— |
||||||
|
Subject Vesting Shares liability |
14,217,000 |
— |
||||||
|
Operating lease liability, non-current |
147,858 |
27,299 |
||||||
|
Total liabilities |
$ |
87,796,959 |
$ |
6,456,839 |
||||
|
Commitments and contingencies (Note 12) |
||||||||
|
Stockholders’ equity (deficit) |
||||||||
|
Preferred stock, $0.0001 par value; 25,000,000 authorized shares and 0 shares |
$ |
— |
$ |
— |
||||
|
Class A Common stock, $0.0001 par value; 600,000,000 authorized shares and |
4,907 |
3,274 |
||||||
|
Class B Common stock, $0.0001 par value; 50,000,000 authorized shares and |
476 |
476 |
||||||
|
Subscription receivable |
(6,000,000) |
— |
||||||
|
Additional paid-in capital |
— |
11,263,647 |
||||||
|
Accumulated deficit |
(43,686,098) |
(17,168,101) |
||||||
|
Total Montana Technologies Corporation stockholders’ equity (deficit) |
49,680,715 |
(5,900,704) |
||||||
|
Non-controlling interests |
612,506,618 |
— |
||||||
|
Total stockholders’ equity (deficit) |
562,825,903 |
(5,900,704) |
||||||
|
Total liabilities and stockholders’ equity (deficit) |
$ |
650,622,862 |
$ |
556,135 |
||||
|
MONTANA TECHNOLOGIES CORPORATION |
||||||||
|
Three Months Ended |
||||||||
|
2024 |
2023 |
|||||||
|
Costs and expenses: |
||||||||
|
General and administrative |
$ |
827,576 |
$ |
218,175 |
||||
|
Research and development |
896,613 |
604,944 |
||||||
|
Sales and marketing |
37,725 |
10,423 |
||||||
|
Depreciation and amortization |
1,145 |
1,085 |
||||||
|
Loss from operations |
(1,763,059) |
(834,627) |
||||||
|
Other expenses, net: |
||||||||
|
Interest income |
38,236 |
— |
||||||
|
Change in fair value of Earnout Shares liability |
(7,672,000) |
— |
||||||
|
Change in fair value of True Up Shares liability |
269,000 |
|||||||
|
Change in fair value of Subject Vesting Shares |
(2,425,000) |
— |
||||||
|
Total other expenses, net |
(9,789,764) |
— |
||||||
|
Loss before income taxes |
(11,552,823) |
(834,627) |
||||||
|
Income tax expense |
— |
— |
||||||
|
Net loss |
$ |
(11,552,823) |
$ |
(834,627) |
||||
|
Net loss attributable to non-controlling interests |
(26,382) |
— |
||||||
|
Net loss attributable to common stockholders of the Company |
$ |
(11,526,441) |
$ |
(834,627) |
||||
|
Weighted average Class A common stock outstanding, basic and diluted |
36,916,955 |
32,599,213 |
||||||
|
Basic and diluted net loss attributable to common stockholders, Class A common stock |
$ |
(0.28) |
$ |
(0.02) |
||||
|
Weighted average Class B common stock outstanding, basic and diluted |
4,759,642 |
4,759,642 |
||||||
|
Basic and diluted net loss attributable to common stockholders, Class B common stock |
$ |
(0.28) |
$ |
(0.02) |
||||
|
MONTANA TECHNOLOGIES CORPORATION |
||||||||
|
For the Three Months Ended March 31, |
||||||||
|
2024 |
2023 |
|||||||
|
Cash Flows from Operating Activities |
||||||||
|
Net loss |
$ |
(11,552,823) |
$ |
(834,627) |
||||
|
Adjustment to reconcile net loss to cash used in operating activities |
||||||||
|
Depreciation and amortization |
1,145 |
1,085 |
||||||
|
Amortization of operating lease right-of-use assets |
52,068 |
5,211 |
||||||
|
Change in fair value of Earnout Shares liability |
7,672,000 |
— |
||||||
|
Change in fair value of True Up Shares liability |
(269,000) |
— |
||||||
|
Change in fair value of Subject Vesting Shares liability |
2,425,000 |
— |
||||||
|
Changes in operating assets and liabilities: |
||||||||
|
Prepaid Expenses and Other Assets |
15,010 |
12,576 |
||||||
|
Operating lease liabilities |
(51,346) |
(5,211) |
||||||
|
Accounts payable |
(2,674,319) |
40,279 |
||||||
|
Accrued expenses, accrued transaction costs and other liabilities |
(1,057,718) |
(22,948) |
||||||
|
Net cash used in operating activities |
(5,439,983) |
(803,635) |
||||||
|
Cash flows from Investing Activities |
||||||||
|
Purchases of fixed assets |
(1,450) |
— |
||||||
|
Net cash used in investing activities |
(1,450) |
— |
||||||
|
Cash flows from Financing Activities |
||||||||
|
Proceeds from the exercise of warrants |
45,760 |
— |
||||||
|
Proceeds from the exercise of options |
56,250 |
— |
||||||
|
Proceeds from the issuance of common stock |
43,365,000 |
255,861 |
||||||
|
Transaction costs – recapitalization |
(972,103) |
— |
||||||
|
Net cash provided by financing activities |
42,494,907 |
255,861 |
||||||
|
Net increase (decrease) in cash |
37,053,474 |
(547,774) |
||||||
|
Cash, beginning of period |
375,796 |
5,211,486 |
||||||
|
Cash, end of the period |
$ |
37,429,270 |
4,663,712 |
|||||
|
Non-Cash investing and financing activities: |
||||||||
|
Initial recognition of earnout shares liability |
$ |
53,721,000 |
$ |
— |
||||
|
Initial recognition of True Up Shares liability |
555,000 |
— |
||||||
|
Initial recognition of Subject Vesting Shares liability |
11,792,000 |
— |
||||||
|
Initial recognition of ROU asset and operating lease liability |
172,649 |
— |
||||||
|
Liabilities combined in recapitalization, net |
8,680,477 |
— |
||||||
|
Acquisition of business from GE Vernova in exchange for issuing non-controlling interests |
612,533,000 |
— |
||||||
|
Supplemental Cash flow information: |
||||||||
|
Taxes paid |
— |
— |
||||||
Contacts
Investor Relations
Tom Divine – Vice President, Investor Relations and Finance
[email protected]
Media:
Kekst CNC
[email protected]
SOURCE Montana Technologies
Montana
Montana governor launches sanctuary crackdown, probes capital city over ICE limits
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A western state’s governor and attorney general are launching an investigation into potential violations of a statewide ban on sanctuary cities and sanctuary-jurisdictional policies, pledging zero tolerance for failure to cooperate with federal immigration authorities.
Montana Gov. Greg Gianforte told Fox News Digital that he and Attorney General Austin Knudsen, both Republicans, will investigate the capital city of Helena under SB 200, which permits civil legal action and enforcement of fines against jurisdictions found in violation.
“In Montana, we don’t tolerate defiance and we support our law enforcement officers,” Gianforte told Fox News Digital.
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“While the attorney general’s initial investigation will focus on the city of Helena, we’re really sending a message to all local governments across the state: If you are found to be in violation of state law, there will be penalties.”
In response to Helena City Commissioners’ vote to prevent local coordination with federal immigration enforcement, Gianforte and Knudsen announced the decision will be investigated as a potential violation of the sanctuary city ban originally authored by state Rep. Kenneth Holmlund, R-Miles City.
Gianforte said he has “serious concerns” about the resolution’s compliance with state law and said that under the sanctuary city ban, no state or local agency may refuse to cooperate with DHS.
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In a letter to Knudsen formally requesting his office’s cooperation, Gianforte laid out how “securing the border has been a top priority of President Donald J. Trump after the previous administration let nearly 11 million illegal immigrants enter freely into the United States under their watch.”
He referenced Trump’s mass deportation efforts and said that it is unfortunate to see “recent events” elsewhere in the U.S. that have put immigration agents in danger.
In that regard, he described a recent Helena City Council vote as ordering local officers not to get involved in actions to assist other agencies nor to detain or stop a person based on suspicion of immigration law or status infractions.
JD VANCE, ICE FLIP SCRIPT ON SANCTUARY CITY LEADERS AS ‘CHAOS’ ERUPTS ACROSS MN: ‘THIS IS DANGEROUS’
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“This resolution is clearly designed to obstruct federal law enforcement operations,” Gianforte said.
Knudsen told the Flathead Beacon that Helena appears to be “thumbing its nose to the Montana Legislature” and must understand it does not make state law.
“I encourage [the city] to retain counsel [and] get a lobbyist…” he said in part.
A spokeswoman for the city of Helena told Fox News Digital it had not received any formal communication on the matter from Gianforte, and added that “as a general practice, the City does not provide comment on pending or potential litigation matters.”
“[Helena’s] resolution was drafted with careful consideration of applicable local, state, and federal law, and the City believes the resolution is consistent with those legal requirements,” she said.
“The City remains committed to upholding all applicable federal and state laws.
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Knudsen’s office signaled it is only officially looking at Helena, but local reports also pointed to concerns about Missoula — the state’s second-largest behind Billings.
A spokesperson for Missoula told the Montana Free Press it has never been and is not currently a sanctuary city, while adding that its police officers do not inquire about immigration status in public interactions.
Montana
Montana State swept Montana, but postseason positioning looms large in Big Sky
MISSOULA — It’s officially less than three weeks until Starch Madness in Boise, Idaho, and Saturday’s Brawl of the Wild matchup between Montana State and Montana had huge implications in the standings for all four programs.
The doubleheader began with the women’s matchup, with Montana State setting the tone with a big lead early on the way to a 72-55 victory.
Montana State’s Tricia Binford said whether you get a great start or not, as a coach you want your team to play a complete game for four quarters. This was especially important in Saturday’s game.
WATCH THE VIDEO:
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“For us, we were just making sure we were rotating, keeping some fresh legs. We were able to get Brooke (Fatupaito) some early minutes back (in) her first game back,” Binford said. “So that gave us another experienced kid into the rotation, I think that really helped.”
With the win, the Bobcats remain in second in the Big Sky women’s basketball standings behind Idaho.
Montana State’s men’s program had a back and forth game before pulling away in the final few minutes for an 82-71 win.
Senior guard Jed Miller knew the impact the crowd would have on the game, and what the Bobcats had to do to control the tempo.
“We knew it was going to be a hostile environment, like every rivalry game is,” Miller said. “So we had to calm down a little bit after the beginning.”
Miller gave credit to Montana for its hot start.
“They came out the gates firing and shot the ball really well,” Miller said. “We had to just settle in and do what we do best.”
Montana State now maintains sole possession of the second spot in the Big Sky men’s basketball standings behind Portland State.
Montana’s men’s program fell to third place with the loss, but Griz coach Travis DeCuire believes the team had takeaways from this game that can be implemented moving forward.
“It’s a game of adjustments, but you’re always going to take positives from games and believe that if you do the things that you see worked consistently within that game you win,” DeCuire said. “That’s how we’ll feel the next time going in, I’ll find those things, and then we’ll try to execute them for 40 minutes.”
As for the Lady Griz, they dropped to eighth in the standings, coach Nate Harris is still focused on continuing to play their way into a better position as the conference tournament approaches.
“It’s all really important,” Harris said. “Every game is the biggest game of the year, but there is a week in March where you have to be really good. And so we’ve just got to keep building towards that.”
Harris thought his team had positives to draw on from the final two and a half quarters of the game.
“We (had) some really positive things that we can lean on and really get better at them,” Harris said. “Where do we go (from here)? We go to practice on Monday, to try and get better, and then turn around and play five more conference games, and try to win every single one of them, so that we can put ourselves in the best situation possible to win games in Boise.”
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