Origin Materials, a chemical technology company, is in talks to go public through a merger with the blank checks firm Artius Acquisition Inc., according to people with knowledge of the subject.
The deliberations are underway and may not lead to a transaction, people said, asking not to be identified because the information is private.
A representative for Artius, a special purpose acquisition company, or SPAC, declined to comment. Origin Materials representatives did not respond to requests for comment.
Origin Materials extracts chemicals from plants that are used to make a more environmentally friendly version of plastic, according to its website. Its partners and customers include Nestlé SA, Danone SA and PepsiCo Inc.
The talks highlight how the SPAC market is still strong. On Monday, 48 companies with a combined value of $ 27 billion announced deals to go public through the merger with SPACs this year, according to data compiled by Bloomberg. New blank check companies have raised about $ 45 billion on US stock exchanges this year, accounting for more than 60% of the year’s IPO volume, the data show.
Origin Materials is building a new plant in Ontario, she said in a press release in November.
Artius raised $ 630 million in an initial public offering in July.