Spring Valley Acquisition Corp. II Reports $6.8M Net Income for Fiscal Year 2024

Spring Valley Acquisition Corp. II, a blank check company incorporated in the Cayman Islands, reported its financial performance for the fiscal year ending December 31, 2024, in its recent 10-K filing. The company generated a net income of approximately $6.8 million, primarily from $7.7 million in income from investments held in its trust account, offset by $842,565 in general and administrative expenses. This represents a decrease from the previous fiscal year, where the company reported a net income of approximately $10.97 million. The decline in profitability is attributed to a slight increase in administrative expenses, which remained consistent year-over-year.

The company has not yet completed any business combinations since its Initial Public Offering (IPO) on October 17, 2022, which raised approximately $230 million. As of December 31, 2024, Spring Valley had approximately $25.6 million held in its trust account, down from $158.8 million after a series of shareholder redemptions. In January 2024, shareholders redeemed 8,362,234 Class A ordinary shares for approximately $90.7 million, and in November 2024, an additional 12,424,337 shares were redeemed for about $142.1 million. These redemptions were part of the company’s efforts to extend the deadline for completing a business combination to October 17, 2025.

Strategically, Spring Valley is focused on identifying and acquiring businesses in the sustainability sector, leveraging the extensive experience of its management team. The company has engaged in discussions with potential targets but has not yet finalized any agreements. The management team, which includes experienced professionals from the sustainability industry, aims to utilize their network and expertise to identify suitable acquisition opportunities. However, the company faces significant competition from other special purpose acquisition companies (SPACs) and private equity firms, which may limit its ability to secure attractive targets.

Operationally, Spring Valley has maintained a lean structure, with only two executive officers and no full-time employees prior to completing a business combination. The company has incurred costs related to its search for acquisition targets, and its management believes that it may not have sufficient working capital to meet its needs through the completion of a business combination or until the mandatory liquidation date. The company’s ability to continue as a going concern is contingent upon successfully completing a business combination by the extended deadline.

Looking ahead, Spring Valley's management remains optimistic about the potential for growth in the sustainability sector, driven by macroeconomic trends and increased focus on environmental, social, and governance (ESG) practices. However, the company acknowledges the risks associated with its business model, including the potential for market volatility and the challenges of identifying suitable acquisition targets. The management team is committed to executing its strategy and enhancing shareholder value through a successful business combination.