Verde Bioresins and TLGY Acquisition today announced a definitive business combination agreement at a pro forma equity value of $433 million.
Verde is engaged in sustainable product innovation and full-service bioplastics production with its bioresins, known as PolyEarthylene.
If approved, upon closing the combined company is expected to list on the nasdaq under the new ticker symbol VRDE.
The proposed business combination implies an implied pre-money enterprise value for Verde at closing of $365 million, excluding earnouts consideration. The deal is expected to close in the second half of 2023.
Assuming no further TLGY redemptions, the proposed business combination would result in gross proceeds consisting of the $78 million in cash held in TLGY's trust. Additionally, Verde's controlling shareholder has committed to making a PIPE investment in TLGY at the closing of the business combination, subject to certain conditions.
TLGY raised $230 million in a December 2021 IPO, although redemptions in February erased about 75% of the trust. Read more.