Factorial Energy Inc. made its Nasdaq debut on Monday under the new ticker symbol FAC, drawing significant attention from traders as shares surged 16% to close at $13.80. The stock had previously traded in premarket sessions near $20.70, reflecting strong initial demand for the solid-state battery company following its merger with special purpose acquisition company Cartesian Growth Corporation III (CGCT).
The business combination, which closed on June 5 and took effect on June 8, replaces CGCT's blank-check status with an operating company focused on next-generation battery technology. The transaction implies an equity value of approximately $1.3 billion and raised over $100 million in gross proceeds to support commercialization efforts.
Former CGCT shareholders now hold Factorial Energy common stock under the FAC ticker, while public warrants trade as FACWW. The company's units were suspended as part of the transition. Factorial has scheduled a Nasdaq opening bell ceremony for June 17 to mark the milestone.
The capital raised will be used to advance Factorial's solid-state battery technology, which replaces the liquid electrolyte found in conventional lithium-ion cells with a solid material. This approach promises improved energy density, faster charging times, and enhanced safety, though scaling production and achieving cost parity remain key challenges.
Factorial CEO Siyu Huang stated that the company was built to solve one of the hardest problems in energy and that the Nasdaq listing will accelerate development. The company is focusing on validation milestones rather than large-scale output, citing recent achievements including a Mercedes-Benz EQS that completed a 1,205-kilometer single-charge test, Stellantis lab evaluations of 77 amp-hour cells, and drone integration deals spanning three continents.
The deal structure has contributed to some volatility in the stock. SEC filings indicate that investors redeemed 23,051,313 Cartesian Growth Class A ordinary shares prior to domestication, with remaining shares reclassified one-for-one into Factorial Series A common stock. The company is classified as a Nasdaq controlled company due to founders retaining majority voting power through Series B shares. Additionally, former Factorial holders face staggered lock-up expirations, some tied to price targets.
Factorial joins a limited group of publicly traded battery technology companies. Rival QuantumScape (QS) has a market capitalization near $4.68 billion, while Solid Power (SLDP) is valued at approximately $642 million. Factorial's entry into the public markets comes amid growing interest in energy storage solutions for defense, aerospace, hyperscale data centers, and electric mobility applications.
Peter Yu, chairman and CEO of Cartesian Growth III, expressed pride in anchoring the common-equity PIPE (private investment in public equity), which provided additional capital alongside the merger proceeds. The transition marks the end of CGCT's tenure as a SPAC, a structure that involves a listed cash shell merging with a private company to take it public.
