Nxu Inc. acquires Los Angeles-based Verde Bioresins Inc.

On October 23, Los Angeles-based Verde Bioresins Inc. agreed to be acquired by Nxu Inc. from Humanitario Capital for $16.2 million. The deal was supported by shareholders on both sides, but now it needs to receive final approval.

Verde produces packaging materials using renewable ethanol-based feedstocks such as sugarcane as the basis of its products, rather than plastic or corn-based materials. The company operates a manufacturing facility in Fullerton that aims to produce 25 million pounds annually. The company forecast sales of $60 million to $80 million from July 2024 to June 2025.

Earlier this year, Verde Bioresins considered going public through a reverse merger with a special purpose acquisition company, but terminated that agreement to pursue the acquisition. The combined company is expected to be renamed Verde Bioresins, Corp. and will be listed on Nasdaq under the new ticker symbol VRDE.

Lake Street Capital Markets LLC served as fairness opinion provider to Nxu and Snell & Wilmer LLP served as legal counsel. Roth Capital Partners LLC served as financial advisor to Verde Bioresins Inc. and Wilmer Cutler Pickering Hale and Dorr LLP served as legal advisor.