Sign up for our popular daily email to catch all the latest EV news!
Nxu, Inc., a company specializing in energy storage and charging solutions, has announced a merger with Verde Bioresins, Inc., a leader in sustainable product innovation. The all-stock transaction will see Nxu acquire all outstanding shares of Verde, with the newly combined company to be renamed Verde Bioresins, Corp. and listed on Nasdaq under the ticker symbol “VRDE.” The merger is aimed at creating long-term shareholder value while promoting environmentally friendly plastics. Verde’s proprietary PolyEarthylene bioresin is positioned to replace traditional petroleum-based plastics and significantly impact the global plastics market.
Key Highlights
- Merger between Nxu and Verde Bioresins: The all-stock transaction aims to promote sustainable plastic innovation.
- Renaming and new ticker symbol: Upon closing, the combined company will be known as Verde Bioresins, Corp., listed under “VRDE.”
- PolyEarthylene bioresin potential: Designed as a sustainable replacement for petroleum-based plastics, it could address nearly half of the $600 billion global plastics market.
- Ownership distribution: Verde shareholders will own 95% of the combined company, while Nxu shareholders will hold 5% after the merger.
- Leadership structure: Verde will appoint six out of seven board members, with Verde’s management team leading the new company.
Verde’s PolyEarthylene is an economically feasible alternative that can integrate seamlessly into existing plastics manufacturing processes, providing a solution that meets most of the environmental, application, and cost requirements of the plastics industry. Brian Gordon, Co-founder and President of Verde, expressed enthusiasm about the merger, noting potential applications for Verde’s bioresin in Nxu’s EV charging systems, creating a more environmentally friendly offering.
Upon completion of the merger, Verde will control 95% of the combined company, with Nxu shareholders owning the remaining 5%. Verde’s controlling shareholder, Humanitario Capital, LLC, has agreed to vote in favor of the merger, alongside Nxu’s major shareholders, Mark Hanchett and Annie Pratt.
The merger is part of a strategic initiative by Nxu’s Board of Directors, which explored multiple strategic alternatives to optimize the company’s assets and create sustainable value. Co-chair of the Nxu Strategic Planning Committee, Britt Ide, emphasized the importance of Verde’s growth potential in the plastics industry, while Jessica Billingsley highlighted the value of leveraging public markets for market share growth.
Advisors for the transaction include Lake Street Capital Markets, LLC, which provided a fairness opinion to Nxu, and Roth Capital Partners, LLC, serving as financial advisor to Verde. Legal counsel for Nxu is Snell & Wilmer L.L.P., while Verde is represented by Wilmer Cutler Pickering Hale and Dorr LLP.
Verde aims to address the growing global plastic pollution crisis by offering sustainable bioplastic alternatives for industries including food service, consumer goods, automotive, and more. Nxu, Inc. continues to leverage its technologies for e-mobility and energy storage solutions, contributing to an electrified future.
Sign up for our popular daily email to catch all the latest EV news!
