New Nuclear SPAC Terra Innovatum Wavers on First Trading Day

Terra Innovatum is aiming to tap into a burgeoning nuclear renaissance. (Michael M. Santiago/Getty Images)

Key Points

• Terra Innovatum, a developer of small nuclear reactors, debuted on Nasdaq, with shares fluctuating, initially rising over 10% before falling 3%.
• The company, which went public via a SPAC, raised $130 million to fund its first reactor.
• Terra Innovatum’s “micro-modular” reactor is designed for versatile placement, including remote sites, and can operate for 15 years without refueling.

A developer of tiny nuclear reactors was making big moves in the stock market on its first day of trading.

Terra Innovatum, which was founded in Italy and makes reactors designed to be the size of a small house, made its debut on the Nasdaq on Friday. Shares were fluctuating in early trading, falling 3% after rising more than 10% earlier.

As with most other new nuclear companies, Terra Innovatum doesn’t have revenue yet, or a design that has been fully licensed by U.S. regulators.

“We anticipate that we will continue to incur losses, and expect that we will not generate revenue, for the foreseeable future,” the company said in a regulatory filing.

It went public using the SPAC process, and raised $130 million from investors—enough to build and deploy its first reactor, the company says.

Terra Innovatum is aiming to tap into a burgeoning nuclear renaissance that has been encouraged by government officials—including President Donald Trump—who say nuclear power is needed to power AI data centers and other heavy electricity users.

Before Terra Innovatum, there were only three U.S. stocks that offered a pure-play bet in the industry—Oklo, Nuscale, and Nano Nuclear. All three have seen their stocks soar since going public. But analysts have cautioned in recent weeks the momentum is unsustainable until more progress is made.

Terra Innovatum’s management believes it has several advantages that will catapult it to the front of a very crowded pack of advanced nuclear companies. The company’s “micro-modular” reactor is designed to be built in a cube that can be placed almost anywhere—including at remote mining locations that can’t easily get power from the grid. It is expected to be about 33 feet on each side. The reactor uses standard kinds of nuclear fuel and management says it can operate continuously at full power for 15 years without refueling.

It is the first in the next wave of nuclear companies to go public. Others on deck include Terrestrial Energy and Eagle Energy Metals.

Write to Avi Salzman at avi.salzman@barrons.com