Nasdaq-listed highly enriched isotopes company ASP Isotopes’ (ASPI’s) shares started trading on the JSE on August 27 under the ticker ISO.

The company, which is in the process of acquiring ASX- and JSE-listed helium and natural gas producer Renergen, has said it has progressed the overall offering in its core business, as well as the acquisition.

The acquisition is by way of a scheme of arrangement, under which Renergen shareholders will receive 0.09196 new ASPI shares for each Renergen share held on the record date.

ASPI noted in a media release that Renergen shareholders approved the resolution relating to the approval of the scheme – with support from 99.8% of voting shareholders – at the Renergen general meeting held on July 10.

“Our acquisition of Renergen is an exciting step for ASPI. Both isotopes and helium are viewed by almost every Western government as critically and strategically important materials.

“The combination of these two businesses will create a company with huge strategic value and a vital part of a fragile supply chain,” said ASPI CEO and chairperson Paul Mann in the release.

ASPI explained that the combination of Renergen and ASPI aimed to create a global leader in the production of critical and strategically important materials, including electronic gases such as helium, various fluorinated products and isotopically-enriched gases.

The combination is expected to create a vertically and horizontally integrated supply chain with significant geographic and customer overlap, with substantial synergies.

Additionally, the company noted that the transaction was expected to be highly accretive to ASPI's revenue, earnings before interest, taxes, depreciation and amortisation, earnings a share and cash flow, starting from 2026.

“It feels like there's an alignment of interest between Renergen . . . and ourselves,” Mann told Engineering News at the listing event.

“We will become a critical materials powerhouse for the world, enabling many technologies the world needs in the future, and so it's a very logical step for both companies,” he added.

QUANTUM LEAP ENERGY

Meanwhile, ASPI noted that it had also progressed its plan to implement a spin-out of its subsidiary Quantum Leap Energy (QLE) as a separate public company.

Mann explained that the creation of two independent companies was driven by the different regulatory landscapes, supply chains and funding requirements for the production of nuclear fuel and medical and industrial isotopes.

“We believe ASPI and QLE will be better served operating independently from each other, with separate strategic plans, business models and capital investments. However, there will be a number of ongoing commercial agreements between the two companies,” he said in the release.

The acquisition of Renergen is expected to close during the third quarter of this year, prior to the spin-out of QLE, which is still expected to occur during the second half of this year.

Although no assurance could be given, ASPI said the spin-out of QLE was subject to market conditions and obtaining applicable approvals and consents and complying with applicable rules and regulations and public market trading and listing requirements.

“Given current technological advancements, ASPI's history and experience place it at the forefront to become a major market player.

“We are in the right place at the right time. ASPI’s advanced and proprietary technologies leverage its years of research and development history to enrich isotopes, allowing it to meet the growing global demand in the three focus industries, with ample opportunity to develop other critical isotopes,” Mann said in the release.

He explained to Engineering News that QLE was going to focus on the “nuclear fuels for the future”, including high-assay low-enriched uranium (Haleu) and lithium six.

“[Haleu] will be required to enable small modular reactors to be successful and small modular reactors are . . . a significant improvement in traditional nuclear reactors. Lithium six will be needed for nuclear fusion, which is likely the cleanest form of energy available.”

INDUSTRY UPDATE

Further, ASPI noted that favourable long-term market trends were anticipated to drive sustained industry growth, while recent geopolitical events had heightened the urgency for companies and countries to seek out reliable sources of enriched isotopes.

“I am convinced that ASPI can benefit greatly from these geopolitical tailwinds,” Mann indicated in the release.

Additionally, ASPI said it had completed the construction of three manufacturing facilities and had continued to expand its operating footprint in South Africa.

ASPI expressed that it had ambitious growth targets to secure at least three additional supply agreements for isotopes critical for new technologies and healthcare, as well as enter additional supply contracts for new isotopes.

During this year, the company progressed the start of commercial production of isotopes at its enrichment facilities in Pretoria.

It also began building the first isotope enrichment facility outside of South Africa.

ASPI said it planned to expand its laser production capabilities in South Africa with new isotope production this year.