LanzaTech to go public in SPAC deal, valued at $2.2 billion

The Nasdaq logo is displayed at the Nasdaq Market site in Times Square in New York, U.S., December 3, 2021. REUTERS/Jeenah Moon

March 8 (Reuters) – LanzaTech NZ Inc on Tuesday announced plans to go public by merging with special purpose acquisition firm AMCI Acquisition Corp II (AMCI.O), in a deal that values ​​the company from carbon recycling technology at $2.2 billion.

The deal is expected to generate gross proceeds of nearly $275 million, including the $150 million raised by AMCI in its IPO last year and a private equity investment of nearly $125 million. investors such as ArcelorMittal and BASF (BASFn.DE).

Shares of the blank check company, which said after raising funds in August that it planned to focus on sustainability, decarbonization and energy transition, rose 1.55% to 9.85 $ in pre-market trading.

A SPAC, or blank check company, typically sells shares at $10 apiece, puts the money in a trust account, then searches for a company it can merge with, going public in the process.

Trading in the SPAC market was stifled by tighter regulatory scrutiny and high investor redemptions, while a sharp decline in shares of companies such as Grab Holdings Ltd and BuzzFeed Inc (BZFD.O) which are made public through SPAC mergers also soured sentiment.

Founded in 2005, Illinois-headquartered LanzaTech says it harnesses biology and data to create climate-friendly materials and fuels, and also recycles carbon waste.

He established sustainable aviation fuel company LanzaJet in 2020, whose investors include All Nippon Airways, British Airways and the Microsoft Climate Innovation Fund.

The combined company will be led by LanzaTech chief executive Jennifer Holmgren, an energy industry veteran.

The deal is expected to close in the third quarter of 2022 and the combined company is expected to trade on the Nasdaq under the symbol “LNZA”.

Reporting by Mehnaz Yasmin in Bangalore; Editing by Shinjini Ganguli and Vinay Dwivedi

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