Carbon transformation specialist LanzaTech to go public via SPAC merger

Carbon Capture and Transformation (CCT) company LanzaTech NZ Inc has agreed to go public through a merger with a special purpose acquisition company (SPAC) sponsored by an affiliate of the AMCI group.

The deal with the blank check company called AMCI Acquisition Corp II (NASDAQ:AMCI) implies a combined pro forma enterprise value of about USD 1.8 billion (EUR 1.64bn) and a pro forma equity value of around USD 2.2 billion, the announcement says.

Under the terms of the agreement, the combined company will get USD 275 million in gross proceeds, including AMCI's USD 150 million of cash held in trust and some USD 125 million committed as part of a private investment in public equity (PIPE). The PIPE will include investments at USD 10.00 per share from AMCI, ArcelorMittal, BASF, K1W1, Khosla Ventures, Mitsui & Co Ltd, New Zealand Superannuation Fund, Oxy Low Carbon Ventures LLC, Primetals Technologies, SHV Energy and Trafigura.

Founded in 2005, Chicago-based LanzaTech has created a platform to convert waste carbon into materials and high-value products including sustainable fuels, fabrics and packaging. The company operates two commercial-scale gas fermentation plants that have produced more than 30 million gallons of ethanol and is building more plants around the world. In 2020, LanzaTech spun out a sustainable aviation fuel company called LanzaJet.

LanzaTech noted that through this deal it will become the first CCT company to access the public capital markets. It plans to use the proceeds to fund the acceleration of its commercial operations, capital requirements associated with development projects, and continued innovation in technology.

Upon completion of the transaction in the third quarter of 2022, the combined company will be known as LanzaTech Global Inc and its common stock will be listed on Nasdaq under the ticker symbol "LNZA”. The merger is pending approval by the stockholders of both AMCI and LanzaTech.

(USD 1.0 = EUR 0.911)

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