Nxu, Inc. and Verde Bioresins, Inc. announced stockholder approval for their merger, enhancing sustainable energy and bioplastics solutions.
Quiver AI Summary
Nxu, Inc. and Verde Bioresins, Inc. announced the approval of their merger by Nxu stockholders following a vote on February 11, 2025. Verde, known for its innovative bioresin PolyEarthylene™, aims to disrupt the traditional plastics industry by providing sustainable alternatives to petroleum-based plastics, targeting a significant portion of the global $600 billion plastics market. Upon the merger's completion, Verde stockholders will own approximately 95% of the combined company, while Nxu stockholders will account for 5%. The transaction is expected to close in March 2025, pending certain conditions, and will result in a management team primarily appointed by Verde. The merger is viewed as a pivotal step towards enhancing sustainability in transportation and creating long-term value.
Potential Positives
- Stockholders of Nxu approved the merger with Verde Bioresins, indicating shareholder support for strategic growth and innovation.
- The merger combines Nxu's focus on energy storage and charging solutions with Verde's sustainable bioplastics technology, positioning the company to address significant environmental challenges in the plastics industry.
- Verde's PolyEarthylene™ has the potential to replace traditional petroleum-based plastics, targeting nearly half of the $600 billion global plastics market, thus presenting a significant market opportunity for the combined company.
- The merger is expected to be completed by March 2025, which could streamline operations and enhance value creation for stockholders in the long term.
Potential Negatives
- The merger results in a significant dilution of Nxu stockholders' ownership, as they will only hold approximately 5% of the combined company compared to Verde's 95% stake.
- The transaction's approval is contingent on several closing conditions, including Nasdaq's approval for listing, which introduces uncertainty and risk for Nxu's future.
- There are numerous forward-looking risks associated with the merger, including potential operational disruptions, difficulties in realizing anticipated benefits, and the impact of existing and potential litigation related to the merger.
FAQ
What is the merger announcement between Nxu and Verde about?
Nxu, Inc. and Verde Bioresins, Inc. announced their merger approved by Nxu stockholders to enhance sustainable energy and bioplastic solutions.
When was the stockholder vote for the merger held?
The stockholder vote for the merger took place on February 11, 2025.
What is PolyEarthylene™ and its significance?
PolyEarthylene™ is a revolutionary bioresin developed by Verde, designed to replace traditional plastics and reduce environmental impact.
What percentage of the combined company will Verde stockholders own after the merger?
Verde stockholders will own approximately 95% of the combined company following the merger.
When is the merger expected to be completed?
The merger is anticipated to be finalized in March 2025, pending certain closing conditions.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$NXU Insider Trading Activity
$NXU insiders have traded $NXU stock on the open market 13 times in the past 6 months. Of those trades, 0 have been purchases and 13 have been sales.
Here’s a breakdown of recent trading of $NXU stock by insiders over the last 6 months:
- JESSICA BILLINGSLEY has made 0 purchases and 2 sales selling 368,326 shares for an estimated $106,978.
- BRITT E IDE has made 0 purchases and 4 sales selling 361,700 shares for an estimated $97,918.
- ANNIE PRATT (President) has made 0 purchases and 6 sales selling 264,655 shares for an estimated $70,412.
- SARAH WYANT (Chief Financial Officer) sold 22,820 shares for an estimated $8,219
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$NXU Hedge Fund Activity
We have seen 6 institutional investors add shares of $NXU stock to their portfolio, and 6 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- TWO SIGMA SECURITIES, LLC added 31,732 shares (+inf%) to their portfolio in Q3 2024, for an estimated $7,860
- JANE STREET GROUP, LLC added 26,600 shares (+inf%) to their portfolio in Q3 2024, for an estimated $6,588
- XTX TOPCO LTD added 20,652 shares (+inf%) to their portfolio in Q3 2024, for an estimated $5,115
- UBS GROUP AG added 3,508 shares (+41.8%) to their portfolio in Q3 2024, for an estimated $868
- GEODE CAPITAL MANAGEMENT, LLC removed 1,087 shares (-1.5%) from their portfolio in Q3 2024, for an estimated $269
- SPIRE WEALTH MANAGEMENT added 1,030 shares (+inf%) to their portfolio in Q4 2024, for an estimated $1,091
- IFP ADVISORS, INC removed 97 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $102
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
MESA, Ariz., Feb. 12, 2025 (GLOBE NEWSWIRE) -- Nxu, Inc., (NASDAQ: NXU) (“Nxu”, “the Company”), a domestic technology company focused on energy storage and charging solutions for the infrastructure we need to power our electrified future, and Verde Bioresins, Inc. (“Verde”), a leader in sustainable product innovation and full-service bioplastics production, announced the approval of the merger by Nxu stockholders after completing a stockholder vote on February 11
th
, 2025.
Verde pioneered PolyEarthylene™, an innovative and proprietary bioresin that has the potential to replace traditional petroleum-based plastics and disrupt the plastics industry. It is an economically feasible alternative that is intended to be dropped into existing plastics manufacturing processes, and Verde is one of the first scalable full-service bio-resin market solutions intended to meet most of the environmental, application, manufacturing, and cost requirements of the industry. Verde’s current polyethylene and polypropylene replacement applications are designed to address nearly half of the approximate $600 billion total addressable global plastics 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. “Verde is poised for significant growth in 2025, and the business combination with Nxu is a critical milestone toward achieving that.”
“The merger with Verde is an exciting opportunity for long-term value creation,” said Nxu Founder, Chairman and CEO Mark Hanchett. “Verde’s PolyEarthylene resins are generating interest across the plastics market, and the potential for disruption is inspiring.”
Merger Details
Upon the closing of the Merger, assuming Nxu’s aggregate enterprise value is approximately $16.2 million, pre-Merger Verde stockholders will own approximately 95% of the combined company and pre-Merger Nxu stockholders will own approximately 5% of the combined company, in each case, on a fully-diluted and as-converted basis. 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 less an amount equal to the excess of certain lease payments remaining unpaid at closing over Nxu’s cash balance at closing.
The transaction is subject to certain closing conditions, including approval of the combined company’s common stock for listing on the Nasdaq Capital Market. Upon closing of the Merger, the board of directors of the combined company is expected to consist of six members, five of whom will be appointed by Verde and one of whom will be appointed by Nxu; and the Verde management team will manage the business of the combined company. The Merger is currently expected to be completed in March 2025, assuming satisfaction of the closing conditions to completion of the Merger.
Advisors
Lake Street Capital Markets, LLC has provided a fairness opinion to the Nxu Board in connection with the proposed transaction. Snell & Wilmer L.L.P. is serving as legal counsel to Nxu in connection with the proposed transaction.
Roth Capital Partners, LLC is serving as financial advisor to Verde. Wilmer Cutler Pickering Hale and Dorr LLP is serving as legal counsel to Verde in connection with the proposed transaction.
Proxy Solicitor Information and Shareholder Questions
Nxu’s shareholders who have questions should contact
info@nxuenergy.com
It is anticipated that the Nxu special shareholder meeting will take place in the first quarter of 2025. Nxu’s proxy solicitation will be handled by D.F. King & Co.
About Verde
Verde is addressing the Growing Global Plastic Pollution Crisis: 85% of all plastics in the United States end up in a landfill, taking hundreds of years or more to decompose. Through its sustainable product innovation and proprietary technology, Verde provides comprehensive design and development solutions for companies seeking alternatives to conventional plastics. Verde targets food service, consumer goods, skincare and beauty, automotive, agricultural, and other packaging end markets with resins for blown film, thermoform, injection molding and blow molding applications. For additional information, please visit
verdebioresins.com
About Nxu, Inc.
Nxu, Inc. is a domestic technology company leveraging its intellectual property and innovations to support e-Mobility and energy storage solutions. For more information, visit
www.nxuenergy.com
.
Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can typically be identified by such words as “aim”, “anticipate,” “believe,” “continue,” “could,” “estimate,” “evolve,” “expect,” “forecast,” “intend,” “looking ahead,” “may,” “opinion,” “plan,” “possible,” “potential,” “project,” “should,” “will,” and variations of such words and other similar expressions.
These forward-looking statements are only predictions based on current expectations and assumptions and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. There are important factors that could cause actual results to differ materially from the results expressed or implied by forward-looking statements, including the risk factors set forth under “Risk Factors” in Nxu’s Registration Statement on Form S-4 (File No. 333-283114) (as amended and supplemented, the “Registration Statement”) and filed by Nxu with the Securities and Exchange Commission (“SEC”), and any of the following: (i) the expected timing to consummate the Merger and/or the transactions contemplated by the Merger Agreement; (ii) the satisfaction (or waiver) of closing conditions to the consummation of the Merger and/or the transactions contemplated by the Merger Agreement, including obtaining stockholder approvals and any required regulatory clearances; (iii) existing and potential litigation relating to the Merger and/or the transactions contemplated by the Merger Agreement that could be instituted against Nxu, Verde or their respective directors; (iv) risks related to Nxu’s continued listing on Nasdaq until closing of the Merger; (v) risks related to (a) the combined company’s satisfaction of the Nasdaq initial listing application qualifications for the listing on the Nasdaq Capital Market and (b) Nasdaq’s approval of the listing of the shares of Nxu common stock to be issued in connection with the Merger; (vi) risks associated with the possible failure to realize certain anticipated benefits of the Merger, including with respect to future financial and operating results; (vii) uncertainties regarding unexpected costs, liabilities or delays in connection with the consummation of the Merger and/or the transactions contemplated by the Merger Agreement, and the impact such costs, liabilities or delays would have on the anticipated cash resources of the combined company upon closing; (viii) operating costs, customer loss and business disruptions arising from the Merger and/or the transactions contemplated by the Merger Agreement and the pendency or consummation thereof (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers), which may be greater than expected; (ix) the ability of Nxu and Verde to protect their respective intellectual property rights; (x) competitive responses to the proposed Merger and changes in expected or existing competition; (xi) Nxu’s, Verde’s, and the combined company’s limited operating history; (xii) the combined company’s ability to manage growth; (xiii) changes in capital requirements’ (xiv) the combined company’s ability to obtain additional financing; (xv) other adverse economic, business, and/or competitive factors; and (xvi) other risks to the consummation of the Merger and the other transactions contemplated by the Merger Agreement, including circumstances that could give rise to the termination of the Merger Agreement and the risk that the transactions contemplated thereby will not be consummated within the expected time period, without undue delay, cost or expense, or at all.
All forward-looking statements are qualified by, and should be considered in conjunction with, these cautionary statements. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which such statements are made. Except as required by applicable law, neither Nxu nor Verde undertakes any obligation to update forward-looking statements to reflect events or circumstances arising after such date.
Important Additional Information About the Proposed Transaction and Where to Find It
In connection with the proposed transaction, Nxu intends to file relevant material with the SEC. including the Registration Statement that contains a proxy statement of Nxu and that constitutes a prospectus with respect to shares of Nxu’s common stock to be issued in connection with the proposed transaction (the “Proxy Statement/Prospectus”), which Proxy Statement/Prospectus was declared effective by the SEC on January 27, 2025. NXU URGES ITS INVESTORS AND STOCKHOLDERS TO READ THE REGISTRATION STATEMENT, PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT NXU, VERDE, THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and stockholders will be able to obtain free copies of the Registration Statement, Proxy Statement/Prospectus and other documents filed by Nxu with the SEC (when they become available) through the website maintained by the SEC at www.sec.gov. In addition, investors and stockholders should note that Nxu communicates with investors and the public using its website (www.nxuenergy.com) and the investor relations website (investors.nxuenergy.com), where anyone will be able to obtain free copies of the Registration Statement, Proxy Statement/Prospectus and other documents filed by Nxu with the SEC and investors and stockholders are urged to read the Registration Statement/Prospectus and the other relevant materials when they become available before making any voting or investment decision with respect to the proposed transaction.
No Offer or Solicitation
This press release is not intended to and does not constitute (i) a solicitation of a proxy, consent or approval with respect to any securities or in respect of the proposed transaction or (ii) an offer to sell or the solicitation of an offer to subscribe for or buy or any invitation to purchase or subscribe for any securities pursuant to the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act or an exemption therefrom. Subject to certain exceptions to be approved by the relevant regulators or certain facts to be ascertained, the public offer will not be made directly or indirectly, in or into any jurisdiction where to do so would constitute a violation of the laws of such jurisdiction, or by use of the mails or by any means or instrumentality (including without limitation, facsimile transmission, telephone and the internet) of interstate or foreign commerce, or any facility of a national securities exchange, of any such jurisdiction.
NEITHER THE SEC NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THE SECURITIES OR DETERMINED IF THIS PRESS RELEASE IS TRUTHFUL OR COMPLETE.
Participants in the Solicitation
Nxu, Verde and their respective directors, executive officers and other members of management may be considered participants in the solicitation of proxies in connection with the proposed transactions. Information about Nxu’s directors and executive officers, consisting of Mark Hanchett, Annie Pratt, Britt Ide, Jessica Billingsley and Sarah Wyant, including a description of their direct or indirect interest, by security holdings or otherwise, can be found under the captions, “Security Ownership of Certain Beneficial Owners and Management,” “Executive Compensation,” and “Director Compensation” contained in the definitive proxy statement on Schedule 14A for Nxu’s 2024 annual meeting of stockholders, filed with the SEC on May 2, 2024 (the “2024 Nxu Proxy Statement”). To the extent that Nxu’s directors and executive officers and their respective affiliates have acquired or disposed of security holdings since the applicable “as of” date disclosed in the 2024 Nxu Proxy Statement, such transactions have been or will be reflected on Statements of Change in Beneficial Ownership on Form 4 filed with the SEC. Erin Essenmacher was elected to serve as director on the Nxu board of directors on January 13, 2025. To the extent that Ms. Essenmacher and her respective affiliates have acquired or disposed of security holdings, such transactions have been or will be reflected on Statements in Change of Beneficial Ownership filed with the SEC. Additional information regarding the persons who may be deemed participants in the solicitation of proxies, including the information about the directors and executive officers of Verde, has been included in the Proxy Statement/Prospectus and other relevant materials relating to the proposed transaction as filed or when it is filed with the SEC. Investors should read the Registration Statement, Proxy Statement/Prospectus and the other relevant materials when they become available before making any voting or investment decision with respect to the proposed transaction. These documents can be obtained free of charge from the sources indicated above.
CONTACT:
Nxu, Inc.
info@nxuenergy.com
This article was originally published on Quiver News, read the full story.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
