AACQ - A Look At The Origin Materials - Artius Acquisition Potential Merger
- Origin Materials proposes to merge with SPAC Artius Acquisition in a pro-forma deal of ~US$1.8b, with net cash to Origin of ~US$863m, set to complete Q2 2021.
- Origin Materials is a disruptive materials/chemical company that uses wood residue (timber feedstocks) to create carbon negative materials cost effective with oil-based products. Funds are to scale production.
- Origin's materials are used for clothing, textiles, plastics, packaging, car parts etc. Origin's decarbonizing technology addresses a ~$1T market opportunity, already with ~$1 billion in product reservations.
- Valuation appears expensive but very hard to accurately gauge at this stage. Both risk and reward are high. I rate AACQ a speculative buy for longer-term, high-risk investors.
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A Look At The Origin Materials - Artius Acquisition Potential Merger