XCF Global Inc. (NASDAQ: SAFX) saw its stock price jump by 50.93% in after-hours trading on Tuesday, closing at $0.25. This substantial post-market increase came after the company filed documents with the Securities and Exchange Commission (SEC) and announced strategic financing developments aimed at expanding its renewable fuel operations.
The most notable development disclosed in the SEC filing was the conversion of $28 million in outstanding invoices into common stock. This transaction was executed by shareholder Randy Soule and Encore DEC LLC, significantly restructuring part of XCF Global's debt into equity.
Specifically, Encore DEC LLC acquired 36,779,193 shares, representing 17.6% ownership of the company, while Randy Soule obtained 78,901,648 shares, amounting to 49.6% ownership. These newly issued shares are subject to a six-month trading restriction period, indicating a temporary lock-up before they can be freely traded in the market.
Alongside the stock conversion announcement, XCF Global revealed a pivotal partnership with Bank of America (NYSE: BAC). The financial institution is working with XCF to arrange potential debt financing for the New Rise Reno 2 facility, a project dedicated to expanding the company’s capacity to produce Sustainable Aviation Fuel (SAF) and other renewable fuels. This step is strategic in positioning the company to meet increasing sustainability demands within the aviation sector.
Additionally, XCF Global has entered into a non-binding Memorandum of Understanding (MOU) with BGN INT US LLC, the U.S. division of the internationally active commodities and energy group BGN. The goal of this collaboration is to set up frameworks for the global distribution and marketing of SAF across various regions including Europe and the Middle East, expanding the company’s global footprint.
CEO Chris Cooper highlighted the importance of these initiatives, stating the growing need for sustainable fuel alternatives as governments and airlines worldwide enhance their environmental commitments. "Expanding SAF production has never been more critical," Cooper remarked, emphasizing the strategic timing of the company’s financing and distribution agreements.
According to projections cited by XCF Global, the global market for Sustainable Aviation Fuel is expected to surpass $25 billion by 2030, with demand exceeding 5.5 billion gallons. Moreover, if international decarbonization targets are met, the market could balloon to $250 billion by 2050, positioning SAF as a cornerstone in the future of aviation fuel markets.
From a trading perspective, XCF Global’s stock remains volatile. The company has a market capitalization of approximately $34.12 million. Its share price has experienced a steep decline of 98.37% over the previous year, falling from a 52-week high of $44.65 to a recent low of $0.14. Despite this longer-term downtrend, Tuesday’s post-market surge offers a glimpse of renewed investor interest tied directly to the newly disclosed financial transactions.
Technical indicators show the stock's Relative Strength Index (RSI) at 23.37, which typically reflects an oversold condition in the market. However, broader price trend analysis from Benzinga’s Edge Stock Rankings highlights a negative price trend across all time frames for SAFX, denoting inherent risks involved with the security’s performance.
Closing the regular session Tuesday at $0.17, XCF Global’s shares jumped 13.38%, yet the stock remains under pressure given its bearish momentum. Investors should weigh this volatility alongside the company’s strategic moves in financing and market expansion when considering the stock’s outlook.