Nxu Inc. to Acquire Los Angeles-based Verde Bioresins Inc.
Los Angeles-based Verde Bioresins Inc. agreed to be acquired by Nxu Inc. from Humanitario Capital for $16.2 million on Oct. 23. The transaction was supported by shareholders on both sides but now needs to receive final approvals.
Verde manufactures packaging materials using ethanol-based renewable feedstocks such as sugarcane as the base of its product as opposed to plastic or corn-based materials. The company operates a manufacturing facility in Fullerton that aims to produce 25 million pounds annually. The company projected $60 million to $80 million in sales from July 2024 through June 2025.
Verde Bioresins considered going public earlier this year in a reverse merger with a special purpose acquisition company but terminated that agreement to pursue this acquisition. The combined company is expected to be renamed Verde Bioresins, Corp. and listed on Nasdaq under the new ticker symbol VRDE.
Lake Street Capital Markets LLC acted as fairness opinion provider for Nxu, and Snell & Wilmer LLP acted as legal advisor. Roth Capital Partners LLC acted as financial advisor for Verde Bioresins Inc., and Wilmer Cutler Pickering Hale and Dorr LLP acted as legal advisor.
