Shares of Live Oak Acquisition (NYSE:LOAK) are soaring today, as the special purpose acquisition company (SPAC) holds a shareholder vote on its proposed merger with Danimer Scientific.
Shares were up 20% as of 11 a.m. EST on Monday after spiking almost 30% earlier in the session.
The merger to bring Danimer public was announced in October, but today's expected approval by shareholders has investors wanting to jump in for a piece of the bioplastics maker.
Danimer's technology addresses the concerns that many people and corporations have with growing plastic waste streams. The company uses biopolymers to "create plastic products that are biodegradable and compostable ... [and] return to nature instead of polluting our lands and waters," as described by Danimer management.
The merger will bring Danimer public, with investment funds to be used to grow the company's production capacity by 10 times in five years. Danimer says its Kentucky factory is at full capacity, and more capital investment is needed to fill customer demand.
The company is a "a unique and compelling investment opportunity with take-or-pay contracted revenue from a blue-chip client base for fully bio-degradable plastic resin," said Live Oak CEO Rick Hendrix.
Investors interested in sustainability and environmental, social, and governance (ESG) investments should consider Danimer to see if the upcoming capital expansions pay off.