DevvStream (DEVS) and Southern Energy Renewables said Wednesday the companies have entered into a definitive agreement to combine under a new company focused on producing carbon-negative sustainable aviation fuel and green methanol at commercial scale.

Financial details of the transaction weren't provided.

The new, US domiciled, Nasdaq-listed company is expected to operate under the name Southern Energy Renewables and plans to supply lower-cost clean fuels to aviation and maritime customers, the companies said. The company will have divisions for climate solutions and clean fuel products, they added.

The transaction is expected to close in H1 2026 and upon closing, Southern equity holders are expected to own about 70% of the combined company, while DevvStream shareholders will own 30%, the companies said.

DevvStream shares resumed trading at around 10:09 am ET after being briefly halted at 9:57 am ET.

Shares of DevvStream were down over 14% in Wednesday trading.

Price: 1.55, Change: -0.36, Percent Change: -18.85