Lionheart Capital, a special purpose acquisition company (SPAC), is reportedly nearing an agreement to purchase oil fields in Venezuela, with potential deal values ranging between $150 million and $400 million. This move is part of the company's new strategic focus on Venezuela's upstream oil and gas sector, specifically targeting brownfield redevelopment of mature producing fields. The deals would require approval from both Caracas and Washington and are not yet final. The company had previously mailed a definitive proxy statement for a special meeting on June 15, 2026, to extend its deadline for completing an initial business combination through March 20, 2027.
To finance its strategy and future capital needs, Lionheart Holdings is negotiating a non-binding term sheet for a committed equity facility. This facility could provide the right, but not the obligation, to raise up to $2.25 billion over a 24-month period. Proceeds from this facility are intended for the acquisition of oil-producing assets in Venezuela, as well as for working capital and general corporate purposes. However, this facility does not represent committed cash; its availability and timing depend on market conditions, trading volume, and share price.
Lionheart's pursuit of Venezuelan oil assets aligns with a growing trend of investors seeking opportunities in the country's energy industry, as Caracas begins to ease state control. Clear Street LLC, a Wall Street brokerage, has reportedly agreed to provide $1.5 billion for acquisitions and subsequent capital expenses to rehabilitate these fields, with the remainder coming from Lionheart's own funds and bank financing. The company emphasizes that there are no assurances regarding the identification of a suitable target, the signing of definitive agreements, or the completion of any transaction or the equity facility.
