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    Carbon capture company LanzaTech going public in SPAC IPO

    By Kevin Donovan

    15:42, 8 March 2022

    LanzaTech commercial plant
    LanzaTech SPAC IPO - Photo: LanzaTech NZ Inc.

    Carbon capture technology company LanzaTech is going public in a SPAC merger with blank-cheque firm AMCI Acquisition in a transaction that values the company at $1.80bn (£1.37bn), the companies jointly announced.

    Upon closing, scheduled for the third quarter of 2022, the new company will be named LanzaTech Global and trade over the Nasdaq exchange under the ticker “LNZA”.

    Transaction details

    • $1.80bn enterprise value
    • $275m gross proceeds
    • $150m cash in trust, assuming no redemptions
    • $125 private investment in public equity (PIPE) securities financing
    LanzaTech CEO Dr. Jennifer Holmgren with Sir Richard BransonLanzaTech CEO Dr. Jennifer Holmgren with Sir Richard Branson - LanzaJet Inc.

    Transaction participants

    Barclays Capital is acting as financial advisor and capital markets advisor for LanzaTech, with Covington & Burling acting as legal advisor. Evercore Group is acting as financial advisor for AMCI, with White & Case acting as legal advisor.

    Barclays Capital, Evercore Group and Goldman Sachs are acting as PIPE placement agents for AMCI, with Ropes & Gray serving as legal advisor for the placement agent group.  

    PIPE investors include AMCI Acquisition sponsor AMCI, ArcelorMittal, BASF, K1W1, Khosla Ventures, Mitsui, New Zealand Superannuation Fund, Oxy Low Carbon Ventures, Primetals Technology, SHV Energy and Trafigura.

    LanzaTech makes ethanol from carbon wasteLanzaTech makes ethanol from carbon waste - Photo: LanzaTech

    Proceeds to fund product development

    Proceeds will be used to fund LanzaTech’s commercial operations, partnership development and research and development.

    “We are showing the world what is possible when we radically rethink how we source, use and dispose of carbon. We are excited to be on this journey,” said LanzaTech CEO Jennifer Holmgren in a statement. We believe with AMCI that this is a transformative step in our quest to create a sustainable future for all, where everything can be made from recycled carbon.”

    US100

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    AMCI trades higher on the news

    AMCI Acquisition stock traded higher Tuesday, moving to $9.76 per share from Monday’s $9.70 closing share price. AMCI Acquisition trades over the Nasdaq exchange under the ticker “AMCI”.

    AMCI Acquisition went public on 6 August, selling 15 million units to the public at $10 per share to raise $150m. Evercore ISI acted as sole bookrunning manager with I-Bankers Securities as co-manager.

    AMCI Acquisition Corp. (Nasdaq: AMCI) stock since IPOAMCI Acquisition Corp. (Nasdaq: AMCI) stock since IPO - Koyfin

    Converts carbon waste into new products

    Chicago, Illinois-based LanzaTech takes carbon waste and converts it to new, carbon-free energy sources for industry, including Lululemon, Suncor Energy, Unilever and Virgin Atlantic. LanzaTech’s conversion process uses anaerobic bacteria to ferment carbon waste to make ethanol.

    In 2020 LanzaTech spun off unit LanzaJet with investments from All Nippon Airways, British Airways, Microsoft Climate Innovation Fund and Shell.

     

    Related topics

    #IPO

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