Onfolio Holdings Inc. (NASDAQ:ONFO) stock trading lower on Wednesday after a highly volatile session, giving up earlier gains despite announcing a strategic combination with Paramount Helium.
Proposed Helium Deal
Onfolio said Wednesday it signed a binding letter of intent with Paramount Helium for a strategic combination that would expand the company into the industrial gas market through a U.S.-based helium resource.
The proposed transaction would give Onfolio access to an estimated $3 billion U.S.-based helium resource, targeting potential supply for semiconductor manufacturing, space exploration, aerospace and defense markets.
Under the proposed transaction, Paramount Helium agreed to terms with the secured creditors of Proton Green LLC to acquire the senior debt position backed by Proton Green’s helium and carbon dioxide assets in North America.
The assets are located in the St. Johns Unit in northeastern Arizona. The company estimates the resource contains more than 20 billion cubic feet of recoverable helium. It said the deposit is about 10 times larger than the recently privatized U.S. Federal Helium Reserve.
If the project moves forward, Onfolio believes the assets could become one of North America’s largest helium resources. The company also expects the site to become the region’s largest single source of merchant carbon dioxide production.
Demand Supports Domestic Helium Supply
The announcement comes as U.S. policymakers place greater emphasis on domestic resource security.
The company said recent disruptions to helium production in Qatar, which supplies about one-third of global helium, have exposed supply chain risks. Although helium is not listed as a critical mineral by the U.S. Geological Survey, the company said it remains strategically important.
Helium is used in semiconductor manufacturing, aerospace, defense and emerging quantum computing technologies. As demand grows, the company believes domestic production could become increasingly important.
Helium-3 Resource Adds Long-Term Potential
Independent analysis also identified the St. Johns Dome as the largest known terrestrial resource of helium-3, a rare isotope.
Helium-3 has applications in quantum computing, neutron detection and some nuclear fusion technologies.
According to the company, the core development area contains more than 50 kilograms of helium-3. It estimates the isotope could sell for between $10 million and $20 million per kilogram.
What Onfolio Holdings (ONFO) Does
Onfolio actively manages small online businesses that operate in sectors with long-term growth opportunities, generating positive and stable cash flows. The company operates in two segments: Business to Business (B2B) and Business to Consumers (B2C), with the majority of its revenue coming from the B2B segment.
Onfolio Price Action
ONFO Stock Price Activity: Onfolio Holdings shares were down 24.21% at $0.29 at the time of publication on Wednesday, according to Benzinga Pro data.
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