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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.”

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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.

 

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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