LanzaTech / AMCI space deal

[bradnorth]

Any LanzaTech holders in here? Wanting to discuss the spac deal

[Walter]

Very minor holder. I've waived my rights to appeal, It would be nice if there was some sort of buyout as custody in USA could be a hassle.

[CJ]

Small holder too and waved right to object as I figured I would get my hands on the shares sooner??
What does the IPO value the shares at. The PIPE investors are buying in at USD10 but is there a share split of existing shares?

[CJ]

Starts trading today so I guess by the time we wake up tomorrow we will know where it has settled. When do we get shareholder info - I was hoping for a Rocketlab like start but it doesn't appear to have much media frenzie.

[Walter]

I don't know what our status is with ownership structure and selling. I think that normally in USA there is some sort of custodian involved, perhaps Lanzatech have that sorted for the smaller NZ based shareholders. Buying will be easy through somebody like Hatch.

[kiora]

https://www.marketscreener.com/quote/stock/AMCI-ACQUISITION-CORP-II-127415882/news/LanzaTech-and-AMCI-Acquisition-Corp-II-Announce-Closing-of-Business-Combination-Establishing-First-42942014/

[CJ]

Looks like it closed at USD7.30. Didn't they raise $240m at USD10 which was meant to be the favorable pre-IPO price?

I have emailed my broker to see if I can get these sold as I don't do direct holdings in overseas companies due to our FIF rules. I not sure but assume this transaction would re-set my cost price for calculating the de-minimis??

[CJ]

Down to 4.15.
Don’t really understand these SPACs. No wonder they are no longer popular.

[bradnorth]

The split was 4.6 - 1 which I'm sure you have all seen now. It was a bit of a lacklustre opening and week or two since. But that has been the general SPAC space for the last 12 months. Have your brokerages assisted you with getting these sold? I have been everywhere and no one seems to show any interest - seem to have someone now though fingers crossed. Still some long term upside here I believe but with FIF etc is a rigamarole and one that needs to be weighed up as to whether it is worth it or not.

[Walter]

Hatch will list it in about a month. They seem to think that they will be able to be transferred to their custodian, which should enable easier buying and selling.

[CJ]

ASB Securities have agreed to take it into their custodian after previously advising it couldn't be done.

Q - is the shareprice fairly valued or is it due to a huge overhang from early investors now cashing out due to finally getting liquidity. Volume is probably under $1m per day and some early employees (who no longer work there) probably have that from their ESOP.

[bradnorth]

ASB Securities have agreed to take it into their custodian after previously advising it couldn't be done.

Q - is the shareprice fairly valued or is it due to a huge overhang from early investors now cashing out due to finally getting liquidity. Volume is probably under $1m per day and some early employees (who no longer work there) probably have that from their ESOP.

Good to know, they told me no initially as well, I have managed to get sorted now though.

I want to say its the overhang from early investors. But I believe it is undervalued, they have tripled their operational plants since 2019 (in 2019 they were valued at roughly 1bn) and forward plans looking at another 6 in the next 1-2 years - the path to profit is pretty clear - but I have also had a stake in this for a long time, and I am a big believer so I don't deny I am probably looking at it from a rose tinted glasses point of view. I think their is also a fundamental lack of understanding in the general market about what is is LanzaTech actually does

[CJ]

Price seems to have moved up $1 recently. Any one follow this company more closely than a monthly look at their shareprice?

[CJ]

And another jump into $5+

[Walter]

Up 100% from the low on a series of good announcements.

[bradnorth]

Price seems to have moved up $1 recently. Any one follow this company more closely than a monthly look at their shareprice?

Air NZ announcement they have selected them to investigate some sustainable fuels through their LanzaJet spin off, as well as some decent progress at a large scale production facility. Add in the current US excitement on the market it’s all pretty good news. A bit more spotlight on them to regain some of the fairly significant undervaluing post IPO in my opinion and people realizing exactly what these guys do.

[kiora]

Competition?
Patents? 1115+ Global reach

"Kerosene from carbon dioxide and water
A pilot project by ETH Zurich used solar power to produce kerosene from carbon dioxide and water in July 2022. The product can be used in existing aviation applications, and "can also be blended with fossil-derived kerosene."[38][39]"

"https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9332358/"
"Developing solar technologies for producing carbon-neutral aviation fuels has become a global energy challenge, but their readiness level has largely been limited to laboratory-scale studies. Here, we report on the experimental demonstration of a fully integrated thermochemical production chain from H2O and CO2 to kerosene using concentrated solar energy in a solar tower configuration. The co-splitting of H2O and CO2 was performed via a ceria-based thermochemical redox cycle to produce a tailored mixture of H2 and CO (syngas) with full selectivity, which was further processed to kerosene. The 50-kW solar reactor consisted of a cavity-receiver containing a reticulated porous structure directly exposed to a mean solar flux concentration of 2,500 suns. A solar-to-syngas energy conversion efficiency of 4.1% was achieved without applying heat recovery. This solar tower fuel plant was operated with a setup relevant to industrial implementation, setting a technological milestone toward the production of sustainable aviation fuels."

", yielding a liquid phase containing 16% kerosene and 40% diesel, and a wax phase containing 7% kerosene and 40% diesel. See Figure S8 for additional details on the FT product distribution."

https://lanzatech.com/wp-content/uploads/2022/03/LanzaTech-Investor-Presentation_March-2022_vF.pdf

[kiora]

And competition for wood process?

"One of the keys to burning liquid wood is the pump system that delivers the fuel to the boiler. Liquid wood has to arrive in the boiler at much higher and more specific pressures than natural gas or petroleum, and because it is highly acidic, the pipes must be high-grade stainless steel. This all requires advanced pumping and monitoring equipment, combined with the engineering chops to put the whole system into place. That’s where Preferred Utilities shines."
"But handling the fuel is one thing. Burning it? Another thing entirely. We’re talking about a substance that is 25% water with the consistency of lemon juice. Burning it effectively presents a significant challenge. That’s why Preferred Utilities developed the Ranger Combustion System. As of May 2017, Preferred Utilities burners are the only known burners capable of effectively and reliably firing liquid wood. There are several installations in Ohio, Vermont, and Maine currently burning this fuel with Preferred Ranger Burners.
https://www.thepyroscope.com/blog/liquid-wood-the-renewable-carbon-neutral-fuel-alternative-that-is-finally-ready-to-burn/#:~:text=Wood%20pulp%20is%20heated%20in,balanced%2 0by%20replanting%20new%20trees.