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MESA - Nxu, Inc. (NASDAQ: NXU), an energy storage and charging solutions company currently valued at $4.41 million, announced that its stockholders have approved a merger with Verde Bioresins, Inc., a sustainable product innovator in the bioplastics industry. According to InvestingPro data, Nxu’s shares are currently trading at $0.27, with analysis suggesting the stock may be undervalued. The merger, which was voted on and passed on February 11, 2025, positions the combined entity to potentially disrupt the $600 billion global plastics market with Verde’s proprietary PolyEarthylene bioresin.
Verde’s bioresin technology, designed to replace conventional petroleum-based plastics, can be integrated into existing plastics manufacturing processes. The company targets a variety of markets, including food service and automotive, aiming to address nearly half of the global plastics market with its sustainable alternatives.
Upon completion of the merger, pre-merger Verde stockholders will own approximately 95% of the combined company, while pre-merger Nxu stockholders will retain about 5%, on a fully-diluted and as-converted basis. The merger values Verde at an estimated $306.9 million and Nxu at approximately $16.2 million, with adjustments based on Nxu’s cash balance and unpaid lease payments at closing. InvestingPro analysis reveals Nxu has experienced significant challenges, with a 74% decline in stock value year-to-date and a weak financial health score of 1.75 out of 10.
The combined company’s board will consist of six members, five appointed by Verde and one by Nxu, with Verde’s management team at the helm. The transaction is expected to close in March 2025, subject to customary closing conditions and approval for listing on the Nasdaq Capital Market.
Lake Street Capital Markets, LLC provided a fairness opinion to Nxu’s board, while Snell & Wilmer L.L.P. and Roth Capital Partners (WA:CPAP), LLC served as legal and financial advisors respectively to Nxu and Verde. Wilmer Cutler Pickering Hale and Dorr LLP also provided legal counsel to Verde.
Nxu’s special shareholder meeting is anticipated to occur in the first quarter of 2025, with proxy solicitation managed by D.F. King & Co. Shareholders seeking further details are directed to contact Nxu via their official email.
The merger announcement includes forward-looking statements that involve risks and uncertainties, which could cause actual results to differ materially from those projected. These statements have not been endorsed by the Securities and Exchange Commission (SEC) or any state securities commission.
This news article is based on a press release statement. For comprehensive merger analysis tools and detailed financial metrics, investors can access additional insights through InvestingPro, which offers over 15 additional ProTips and advanced valuation metrics for informed decision-making.
In other recent news, Nxu, Inc. has announced the appointment of Erin Essenmacher to its Board of Directors, filling a vacancy and also joining the Audit Committee, as per a recent SEC filing. Essenmacher qualifies as an independent director under the Nasdaq Stock Market’s listing rules and will serve until her successor is elected or until her resignation or removal. Her compensation includes $20,000 for the first quarter of 2025, followed by a quarterly cash stipend of $25,000, starting from April 1, 2025, through to January 1, 2026, provided she remains a director through each quarter’s end.
In addition, Essenmacher is expected to enter into an indemnification agreement with Nxu, Inc., similar to previously filed forms. These recent developments come as Nxu, Inc. continues to adjust its governance structure to support its strategic direction in the dynamic automotive landscape.
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