By Joshua Franklin
NEW YORK, Oct 5 (Reuters) – Danimer Scientific said on Monday it has agreed to go public by merging with blank-check acquisition company with Live Oak Acquisition Corp LOAK.N in a deal which values the U.S. bioplastics company at around $890 million.
It is the latest example of a company opting to go public by merging with a so-called special purpose acquisition company (SPAC), rather than through a traditional initial public offering (IPO).
A SPAC is a shell company which raises cash in an initial public offering (IPO) with the goal of buying an unidentified private company, usually within two years, in a deal which would then take the acquired company public.
For Bainbridge, Georgia-based Danimer, the SPAC deal offered a quicker route to the public markets and the funding the company needed than a traditional IPO, Chief Executive Stephen Croskrey said in an interview.