Under the terms of the deal, Nxu will acquire all of the issued and outstanding common shares of Verde in an all-stock transaction. Upon closing of the merger, the combined company is expected to be renamed Verde Bioresins, Corp. and list its common stock on Nasdaq under the new ticker symbol “VRDE.”
Verde has developed PolyEarthylene, proprietary bioresin that has the potential to replace traditional petroleum-based plastics and disrupt the plastics industry. It claims its material can replace nearly half of the $600 billion total addressable global polyethylene and polypropylene market.
“We are thrilled to merge with Nxu, a company at the forefront of sustainable solutions in transportation,” said Brian Gordon, Co-founder and President of Verde. “In addition to selling our biobased, biodegradable and recyclable PolyEarthylene resins to global brands and large plastics converters, we look forward to developing ways to incorporate PolyEarthylene resins into Nxu’s EV charging systems with the hopes of creating an even more environmentally friendly offering.”
For purposes of determining the exchange ratio in the transaction, Verde has been ascribed an aggregate enterprise value of approximately $306.9 million, and Nxu’s aggregate enterprise value will be an amount equal to approximately $16.2 million. The transaction is subject to certain closing conditions, including approval by Nxu and Verde shareholders. Members of the boards of directors of both companies unanimously approved the proposed transaction.