Pender Growth Fund Portfolio Company Announces Proposed Business Combination

General Fusion, a nuclear fusion developer backed by Pender Growth Fund, has announced a proposed business combination with Spring Valley Acquisition Corp. III, a special purpose acquisition company. The agreement, expected to close in mid-2026, would allow General Fusion to become publicly traded on the Nasdaq and secure capital to advance its fusion technology programs.

Deal Details and Strategic Goals

The proposed transaction merges General Fusion’s private operations with Spring Valley Acquisition Corp. III, creating a publicly listed company under the ticker GFUZ. Upon completion, the merger is expected to provide the company with significant funding to accelerate its experimental and development programs while giving investors an opportunity to participate in the emerging fusion energy sector.

The deal is structured with a projected combined equity value of approximately US $1 billion. Closing will depend on regulatory approvals, shareholder consent, and other standard conditions typical of SPAC transactions. Pender Growth Fund anticipates that the combination could enhance its net asset value, with potential benefits translating into increased shareholder value for the fund’s investors.

For General Fusion, the capital raised will primarily be used to support its large-scale demonstration device, the Lawson Machine 26 (LM26), and further refine its Magnetized Target Fusion (MTF) technology. By advancing these technical milestones, the company aims to demonstrate the feasibility of commercially viable fusion energy and move closer to providing a clean and scalable electricity source.

Technology and Market Implications

General Fusion has focused on creating a practical approach to nuclear fusion that blends magnetic confinement with rapid compression to achieve conditions necessary for energy production. The LM26 platform serves as a testbed to validate this method, with the goal of producing energy in a cost-effective and environmentally sustainable manner.

Analysts note that successful commercialization of fusion energy could significantly contribute to global efforts to reduce carbon emissions, providing a stable energy source that complements renewable energy solutions. The transaction is expected to allow General Fusion to expand research and development, increase operational capabilities, and demonstrate its technology to a broader investor base.

Pender Growth Fund has highlighted fusion energy as a sector with long-term growth potential, particularly in light of rising global electricity demand. Investments in companies like General Fusion align with the fund’s focus on emerging technologies that may deliver both financial returns and strategic impact in future energy markets.

Pender Growth Fund and General Fusion

Pender Growth Fund Inc., headquartered in Vancouver, Canada, trades on the TSX Venture Exchange under the symbol PTF. The fund invests in small-cap and growth-oriented companies, often participating in technology-driven sectors where long-term innovation potential exists.

General Fusion was founded in 2002 in Richmond, Canada, and has developed a reputation for pioneering fusion energy technology. Its MTF approach aims to combine the strengths of magnetic confinement and inertial compression, offering a distinct path to achieving sustainable fusion power. The company has attracted backing from energy-focused venture investors and government partnerships, reflecting widespread interest in practical, scalable fusion solutions.

Special purpose acquisition companies (SPACs) like Spring Valley Acquisition Corp. III have become an increasingly common route for private technology firms to access public markets. These transactions can provide faster access to capital and liquidity compared with traditional IPOs, helping companies like General Fusion fund ambitious development programs more efficiently.

The proposed merger positions General Fusion to become a Nasdaq-listed company and secure the resources needed to advance its fusion energy technology. For Pender Growth Fund, the transaction could enhance the fund’s net asset value while providing shareholders exposure to an emerging clean energy sector. If completed as planned, the deal represents a major step toward demonstrating the commercial potential of fusion power while broadening investor participation in this innovative technology.