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Nxu, Inc. has secured shareholder approval for its merger with Verde Bioresins, Inc., marking a strategic move that aligns sustainable bioplastics with energy storage technology. The merger, approved on February 11, 2025, positions Verde as the dominant entity, with its shareholders owning approximately 95% of the combined company post-merger. The deal is expected to close in March 2025, pending final conditions, including Nasdaq Capital Market listing approval.
Key Highlights
- Verde’s PolyEarthylene™ offers a bio-based alternative to traditional plastics, addressing nearly half of the $600 billion global plastics market.
- Nxu’s enterprise value is set at $16.2 million, while Verde’s is valued at approximately $306.9 million for the transaction.
- Verde shareholders will control 95% of the post-merger company, while Nxu shareholders will retain 5%.
- Verde’s management team will lead the combined company, with five of six board members appointed by Verde.
- The merger is expected to drive long-term growth, leveraging Verde’s proprietary bioplastics to disrupt the industry.
Brian Gordon, Co-founder and President of Verde, emphasized the merger’s significance: “Verde is poised for significant growth in 2025, and the business combination with Nxu is a critical milestone toward achieving that.” Meanwhile, Nxu’s CEO, Mark Hanchett, highlighted the disruptive potential of Verde’s bioplastics in the industry.
Advisors and Closing Conditions
Lake Street Capital Markets provided a fairness opinion for Nxu, with Snell & Wilmer L.L.P. acting as legal counsel. Roth Capital Partners, LLC and Wilmer Cutler Pickering Hale and Dorr LLP are advising Verde.
The merger remains subject to final approvals, including Nasdaq listing requirements. A special shareholder meeting for Nxu is anticipated in Q1 2025. More details are available at nxuenergy.com and verdebioresins.com.
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