XCF Global settles debt with Encore DEC through stock swap
In Canada, on May 6, 2026, XCF Global, through its subsidiary New Rise Renewables Reno, LLC, entered into an agreement with Encore DEC, LLC to settle about C$16.7 million in outstanding payables, debt and property liens via the issuance of roughly 37.03 million Class A shares at a conversion price of C$0.451 per share. The transaction, announced publicly on May 12, 2026, converts obligations tied to past engineering and construction work on the New Rise Renewables Reno facility into equity, increasing XCF’s equity capitalization and leaving founder and key stakeholder Randy Soule with a beneficial stake of about 30.56%.
By extinguishing these liabilities and liens in exchange for equity, XCF expects to strengthen its balance sheet, improve financial flexibility and better align incentives with a major stakeholder as it focuses on operational execution and long-term growth in renewable diesel and sustainable aviation fuel. The move follows earlier steps to ease financial pressure, including a forbearance arrangement with the Reno facility’s landowner, and underscores management’s effort to stabilize XCF’s capital structure while advancing its strategy in the competitive renewables sector.
Category: Fuels
