07:32 AM EDT, 10/15/2024 (MT Newswires) -- Wolfspeed ( WOLF ) said Tuesday that it is expecting up to $2.5 billion in additional capital, including a proposed $750 million in federal investment, another $750 million in new financing, and $1 billion of cash tax refunds.

The company said it has signed a non-binding preliminary memorandum of terms with the US Department of Commerce for up to $750 million in proposed direct funding under the CHIPS and Science Act.

Wolfspeed ( WOLF ) also said a group of investment funds led by Apollo, The Baupost Group, Fidelity Management & Research Company and Capital Group has agreed to provide an additional $750 million in new financing.

The company also expects to receive $1 billion of cash tax refunds from advanced manufacturing tax credit under the CHIPS and Science Act.

The company's share price jumped over 21% in recent Tuesday premarket activity.

Price: 13.80, Change: +2.42, Percent Change: +21.27