Nxu Secures Shareholder Approval for Verde Bioresins Merger
Deal News | Feb 12, 2025 | Globenewswire
Nxu, Inc., a technology company specializing in energy storage and charging solutions, has announced shareholder approval of a merger with Verde Bioresins, Inc., a leader in sustainable bioplastics production. This strategic merger aims to leverage the innovative PolyEarthylene bioresin developed by Verde, which is poised to disrupt the $600 billion global plastics market by providing an economically feasible alternative to traditional plastics. Post-merger, Verde's shareholders will control 95% of the combined company, showcasing Verde's valuation at $306.9 million compared to Nxu's $16.2 million. This merger anticipates completion by March 2025, contingent upon Nasdaq listing approval and other closing conditions. Legal and financial advisories are being provided by Snell & Wilmer, and Lake Street Capital Markets for Nxu, with Roth Capital Partners, and WilmerHale advising Verde.
Sectors
- Bioplastics
- Energy Storage
- Mergers & Acquisitions
Geography
- United States – Nxu, Inc. is a domestic technology company, and Verde Bioresins is addressing the U.S. plastic pollution crisis, making the United States a central geography for their operations.
Industry
- Bioplastics – The article revolves around the merger with Verde Bioresins, a company at the forefront of bioplastics innovation with its proprietary PolyEarthylene product.
- Energy Storage – Nxu, Inc. specializes in energy storage and solutions, indicating its role in the technology sector focusing on sustainable electrification.
- Mergers & Acquisitions – The piece details an approved merger deal between Nxu and Verde Bioresins, highlighting significant equity rearrangements and valuations.
Financials
- $16.2 million – Aggregate enterprise value of Nxu pre-Merger.
- $306.9 million – Aggregate enterprise value of Verde ascribed in the merger agreement.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Nxu, Inc. | Bidding Company | Company | A domestic technology company focused on energy storage and charging solutions. |
| Verde Bioresins, Inc. | Target Company | Company | A leader in sustainable product innovation and bioplastics production. |
| Lake Street Capital Markets, LLC | Financial Advisor | Company | Provided a fairness opinion to the Nxu Board. |
| Snell & Wilmer L.L.P. | Legal Advisor | Company | Legal counsel to Nxu. |
| Roth Capital Partners, LLC | Financial Advisor | Company | Financial advisor to Verde. |
| Wilmer Cutler Pickering Hale and Dorr LLP | Legal Advisor | Company | Legal counsel to Verde. |