Investors are expected to track the Nxu Inc. (NASDAQ: NXU) stock this morning after it clocked gains of 235% in a remarkable rally on Thursday. Prior to the beginning of trading today, it could be a good time to take a look at the announcement that led to the price action.
Merger Announcement
The company hit the newswires yesterday after it announced that it had entered into a merger agreement with the firm Verde Bioresins Inc. As per the terms of the agreement, Nxu would pick up all the issued and outstanding common shares in Verde Bioresins in a transaction conducted entirely in stock. Following the completion of the merger, the combined entity would be named Verde Bioresins Corp. and listed on the NASDAQ under the ticker symbol VRDE.
Key Takeaways
The merger was approved unanimously by the members of the board of directors of both companies and would also recommend the shareholders approve the transaction.
The merger could be a game changer given the polypropylene and polyethylene replacement offerings from Verde Bioresins could play in an addressable global plastics market worth more than around $300 billion. It was also noted that Nxu had been committed to its goal of ushering in sustainability through clean technology. The merger with Verde could lead to a further boost to the overarching aim of the company.
Management Quote
“We are thrilled to merge with Nxu, a company at the forefront of sustainable solutions in transportation,” said Brian Gordon, co-founder and president of Verde. “In addition to selling our biobased, biodegradable, and recyclable PolyEarthylene resins to global brands and large plastics converters, we look forward to developing ways to incorporate PolyEarthylene resins into Nxu’s EV charging systems with the hopes of creating an even more environmentally friendly offering.”
Technicals
+/- EMA(20) | 0.32 (+81.56%) |
+/- SMA(50) | 0.28 (+107.50%) |
+/- SMA(200) | 0.54 (+7.59%) |
5-Day Perf. | +117.6% |
1-Month Perf. | +160.07% |
3-Month Perf. | +50.52% |
6-Month Perf. | +61.17% |
YTD Perf. | -74.74% |
1-Year Perf. | -89.18% |
RSI(14) | 84.59 |
ATR(14) | 0.08 |
ADX(14) | 36.33 |
Beta (5Y) | 2.10 |