Verde Bioresins goes public through SPAC deal

Bioplastics maker Verde Bioresins Inc. is going public through a special purpose acquisition company (SPAC).

Santa Monica, Calif.-based Verde was listed under ticker symbol VRDE on the Nasdaq stock exchange on June 22 after merging with TLGY Acquisition Corp.

"Verde intends to become a leader in the global transition to a more sustainable, circular economy," Chairman, President and Chief Operating Officer Brian Gordon said. "We believe the proceeds from the proposed transaction, along with the support of TLGY, will enable us to scale our production capabilities, moving us closer to delivering on the growing interest in our innovative and proprietary bioresin solution."

Verde was founded in 2020 as a full-service bioplastics company specializing in sustainable materials, innovation and manufacturing with its PolyEarthylene-brand resin. Officials in a June 22 news release said that PolyEarthylene is proprietary, bio-based, renewable and sustainable.

They added that PolyEarthylene "aims to accelerate the transition to a more sustainable and circular economy, addressing nearly half of the $600 billion global plastics market that is faced with mounting regulatory pressure for eco-friendly solutions."

Officials also said PolyEarthylene "is cost-competitive, scalable and versatile, making it a sustainable option for a wide range of manufacturing processes, including injection molding, film extrusion, blow molding and thermoforming, and applications such as rigid packaging."

PolyEarthylene has similar performance properties to traditional petroleum-based polymers, officials said, and can be produced in most of the forms and colors desired by prospective customers. It also can be dropped into existing standard manufacturing processes, they added.

Verde has made its materials at a plant in Fullerton, Calif., since 2019. The firm uses a combination of bio-based feedstocks and combines those materials with polyethylene, polypropylene or other resins.

Officials identified materials firm Braskem SA of Brazil as "a strategic supplier" to Verde. "As Verde continues to grow its business, we expect Verde's relationship with Braskem to continue to expand as well," they said.

In April, Verde launched a North American distribution deal with Vinmar Polymers America of Houston, which was looking to expand its sustainable materials lineup. Gordon told Plastics News at the time that Verde's materials are shelf-stable and will biodegrade in landfills. He added that they are separate from existing polylactic acid (PLA) or polyhydroxyalkanoate (PHA) bioplastics.

Gordon also said Verde has three extrusion lines in Fullerton, and that because of increasing demand, all three will be running by the end of the year.

The business purpose of New York-based TLGY, according to a December news release, is "to effect a merger, share exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses."

TLGY, which describes itself as a "blank check" company that "intends to focus its search for an initial business combination on a promising global company — or a company with Asia linkages with the potential to become a global company — with a focus on biopharma or consumer businesses driven by enabling technology," officials said at the time.

TLGY Chairman and CEO Jin-Goon Kim added that his firm "believes Verde is a pioneer in advancing global sustainability initiatives. … We look forward to supporting the company in its mission of providing an effective and environmentally friendly plastic alternative to combat today's current global waste crisis."

The merger values Verde at $365 million. The combination will result in gross proceeds of approximately $76 million to Verde, all of which will be held in cash in TLGY's trust.

TLGY's per-share stock price closed near $10.60 on June 20, essentially unchanged from the start of the year. The stock has been publicly traded since early 2022. TLGY is funded by TLGY Sponsors LLC of Hong Kong.