LanzaTech expands share authorization to 600 million

LanzaTech Global, Inc., an industrial chemicals company based in Skokie, Illinois, has officially increased its authorized common stock from 400 million to 600 million shares, according to a recent SEC filing. The decision, which took effect on October 3, 2024, came after a Special Meeting of Stockholders held on Monday. The amendment to the company's Second Amended and Restated Certificate of Incorporation was approved by a significant majority, with 97,928,612 votes for and 17,526,138 against.

The move to expand the share authorization was part of the company's obligations under a Convertible Note Purchase Agreement with an accredited investor. On August 6, 2024, LanzaTech issued $40.15 million in Convertible Notes to the investor. The agreement necessitated stockholder approval to increase the number of authorized shares to meet the potential future conversion of these notes into common stock.

At the Special Meeting, stockholders also approved a potential "change of control" resulting from the issuance of common stock upon conversion of the Convertible Notes, in compliance with Nasdaq Listing Rule 5635(b). Additionally, for the purposes of Nasdaq Listing Rule 5635(d), the stockholders authorized the company to settle conversions of the Convertible Notes with common stock exceeding 19.9% of the outstanding shares. All proposals related to the Convertible Notes and share authorization were passed without broker non-votes.

LanzaTech, formerly known as AMCI Acquisition Corp. II, is incorporated in Delaware and listed on the Nasdaq Stock Market under the ticker symbols NASDAQ:LNZA for its common stock and NASDAQ:LNZAW for its redeemable warrants. The company specializes in industrial organic chemicals and operates under the name 08 Industrial Applications and Services.

In other recent news, LanzaTech Global has announced a series of significant developments. The industrial chemicals company is expanding its biorefining technology to produce LanzaTech Nutritional Protein (LNP), a sustainable protein alternative. This expansion is supported by Roth/MKM, which maintains a Buy rating for LanzaTech.

The company also announced plans for a facility capable of producing between 0.5 to 1.5 tons of LNP per day, expected to be operational by 2026.

In collaboration with SEKISUI CHEMICAL, LanzaTech Global aims to establish facilities to convert waste into sustainable ethanol, with yearly production estimated at 10 to 12 kilotons. Meanwhile, a legal dispute with Vellar Opportunity Fund over a Forward Purchase Agreement has emerged, alleging Vellar sold shares without the necessary notice for early termination. Additionally, LanzaTech has increased its ownership in LanzaJet from approximately 23% to 36%.

Analysts from TD Cowen and Roth/MKM have weighed in on these developments, with TD Cowen assigning a Hold rating due to expected deployment challenges, while Roth/MKM maintains a Buy rating. In addition, LanzaTech and Technip (EPA:FTI) Energies are in talks with the U.S. Department of Energy for a potential award of up to $200 million to support the SECURE project, aimed at sustainable ethylene production.

InvestingPro Insights

LanzaTech Global's recent decision to increase its authorized common stock aligns with its current financial position and market performance. According to InvestingPro data, the company's market capitalization stands at $415.34 million, with a revenue of $67.69 million in the last twelve months as of Q2 2024. This revenue figure represents a significant growth of 60.41% over the same period.

InvestingPro Tips highlight that LanzaTech holds more cash than debt on its balance sheet, which could provide a cushion for the potential dilution from the newly authorized shares. Additionally, analysts anticipate sales growth in the current year, suggesting potential for future expansion that may require additional capital.

However, investors should note that the company is currently not profitable, with a negative operating income of $89.45 million in the last twelve months. This aligns with another InvestingPro Tip indicating that analysts do not anticipate the company to be profitable this year.

The stock's recent performance has been volatile, with a strong return of 54.41% over the last month, but a significant decline of 33.54% over the past six months. This volatility is consistent with the InvestingPro Tip that the stock generally trades with high price volatility.

For readers interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for LanzaTech Global, providing a deeper understanding of the company's financial health and market position.

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