DevvStream Corp. saw its stock price explode by approximately 150% on Friday afternoon following a joint announcement from the company and its merger partners that their three-way business combination agreement remains in full force and effect. The carbon-management firm, which trades under the ticker DEVS, was last seen at $0.3117 just before 3 p.m. Eastern Time in New York, with over 546 million shares changing hands—a staggering volume compared to its average of 6.9 million shares.
The massive rally came after DevvStream, XCF Global Inc., and Southern Energy Renewables Inc. issued a joint statement late Friday clarifying that recent reports had misinterpreted an earlier filing. The companies confirmed that their business-combination agreement is still "in full force and effect" and that they plan to submit a Form S-4 registration statement to the Securities and Exchange Commission within the next few weeks. A Form S-4 is the standard SEC filing used when securities are offered in connection with a merger or acquisition, providing investors with essential information before they vote on the transaction.
Despite the positive news, significant risks remain. DevvStream acknowledged that its Nasdaq listing is still under threat. The company disclosed last week that the exchange will review it for both a net-income shortfall and a minimum-bid-price issue after its shares traded below $1 for 30 consecutive business days earlier this year. DevvStream cautioned that it cannot guarantee it will regain compliance or maintain its Nasdaq listing.
The merger, first announced in April, is designed to transform DevvStream from a small carbon-credit and environmental-asset operation into a broader low-carbon fuels platform. Under the terms of the deal, DevvStream shareholders would own approximately 10% of the combined entity, with XCF investors taking roughly 66.7% and Southern shareholders about 23.3%. The transaction gives DevvStream exposure to XCF’s sustainable aviation fuel (SAF) business, which produces jet fuel from lower-carbon feedstocks instead of traditional crude oil.
XCF Global, the listed partner in the deal and DevvStream’s closest public comparable, saw its shares rise about 6.2% to $0.4761 on Friday. When the deal was announced, XCF CEO Chris Cooper described the goal as bringing together "production, power, and monetization," while DevvStream CEO Sunny Trinh said the combined company would house "infrastructure, fuels, and environmental markets" under one roof.
However, the transaction still faces numerous hurdles. It must clear SEC review, win shareholder and exchange approvals, secure financing, and meet plant conversion and commercial targets. The companies noted in an April filing that signing a binding agreement does not guarantee the deal will close. Traders are now focusing on Friday’s clarification as the new headline, but that does not eliminate the listing risk or financing risk that still hang over the stock.
DevvStream develops, invests in, and sells environmental assets such as carbon credits and renewable energy certificates, which can be traded as claims on emissions reductions or renewable power generation. The stock’s wild swing—from a high of $0.4248 to a low of $0.12 earlier in the day—underscores the speculative nature of the microcap name. For now, the main story remains intact: a small Nasdaq-listed carbon-credit company attempting to hitch onto a larger low-carbon fuels platform, a narrative that has driven DevvStream’s recent volatility.
