Canatu Oy is set to become a publicly listed company, Canatu Plc, through a share exchange agreement with Lifeline SPAC I Plc. Pending approval at Lifeline SPAC I’s Extraordinary General Meeting, Canatu will apply for listing on the Nasdaq First North Growth Market Finland by September 2024. After the completion, the combined company will be renamed Canatu Plc (in Finnish Canatu Oyj) and headquartered in Vantaa, Finland. This merger enhances Canatu’s credibility, provides additional capital for strategic investments, and increases visibility. Canatu, known for its advanced carbon nanotubes (Canatu CNTs) used in semiconductor, automotive, and medical diagnostics industries, projects 2024 revenues between €20-25 million. The collaboration with Lifeline SPAC I leverages their expertise and network, driving Canatu’s growth and innovation in its core markets and beyond.
Special Purpose Acquisition Companies (SPACs) are publicly traded entities that raise funds through an initial public offering (IPO) with the intent of acquiring an existing company. SPACs offer a quicker, simpler, and potentially lower-risk alternative to traditional IPOs, making them an attractive option for investors and companies alike. They typically go through three main phases: the IPO and listing, the search for a target company, and the final business combination, which requires shareholder approval and regulatory reviews. In the Nordic markets, Nasdaq has introduced specific rules to accommodate SPAC listings, providing a structured and secure framework for these investment vehicles.
The first SPAC to be listed in the Nordics was ACQ Bure AB, which began trading on the Nasdaq Stockholm Main Market in 2021. This milestone reflects the growing interest and demand for SPACs among issuers and investors in the region, complementing the existing listing models Nasdaq offers. The successful listing of ACQ Bure AB, led by Bure Equity with SEB AB as the global coordinator, marks a significant development in the Nordic financial markets, indicating a strong interest from both public and institutional investors and paving the way for future SPAC listings in the region.
Canatu is a deep technology company developing advanced carbon nanotubes (Canatu CNTs) and related products and manufacturing equipment for the semiconductor, automotive, and medical diagnostics industries. These industries require extremely high-quality CNTs and offer Canatu strong growth and profitability potential. Canatu’s versatile platform technology has broad potential applications. Its current core includes CNT membranes for extreme ultraviolet (EUV) lithography in semiconductor and film heaters for advanced driver-assistance systems (ADAS) in automotive. Additionally, biosensors for medical diagnostics are in the development phase.
Canatu is experiencing rapid growth, with a compound annual growth rate of 107.9 per cent from 2020 to 2023. Canatu anticipates continued growth in 2024, forecasting its net turnover for the 2024 financial year to range between EUR 20 million and EUR 25 million. The new combined company targets a revenue of over EUR 100 million and an EBIT margin (adjusted for goodwill amortisations) of over 30 per cent in 2027.
Lifeline SPAC I is a Finnish Special Purpose Acquisition Company founded for corporate acquisitions. It raised gross proceeds of EUR 100 million in its initial public offering in October 2021. Lifeline SPAC I’s strategy primarily consists of recognizing an unlisted company with high growth potential in the technology sector and merging with it. After assessing a large pool of potential acquisition targets, Lifeline SPAC I has concluded that Canatu materially conforms to the investment criteria set by Lifeline SPAC I and has selected Canatu as the target company.
Timo Ahopelto, Chair of Lifeline SPAC I’s Board of Directors, comments: “We have analyzed tens of Nordic technology growth companies for Lifeline SPAC I. Canatu is the perfect match. The capital provided can make the Company grow even faster and become stronger.”
Tuomo Vähäpassi, founding partner and CEO of Lifeline SPAC I, comments: “Canatu has extensive potential in advanced CNT applications. We have followed Canatu’s development for some time and are delighted to combine with Canatu at a stage where it aims to accelerate its business in semiconductor and automotive applications and is entering the emerging medical diagnostics market. We are impressed by Canatu’s technological competencies, which stem from the long heritage of Finnish research in nanomaterials, its experienced management, and its attractive financial profile, all of which lay a strong foundation to create value for our current and new shareholders.”
The combined company will be an attractive opportunity for Canatu to ensure access to additional capital and to position itself as a leader in advanced CNT technology and its applications.
Ari Ahola, Chair of Canatu’s Board of Directors, comments: “As the first investor in Canatu, I have watched firsthand its incredible growth over the last 17 years to become a leader in the advanced carbon nanotubes space. This is a major milestone in the Canatu story, and I believe it will empower the company to drive tomorrow’s industry-transforming products forward. Canatu’s robust and versatile technology platform and continuous innovation enable exciting new business opportunities, such as biosensors for medical diagnostics.”
Juha Kokkonen, CEO of Canatu, comments: “Canatu has grown rapidly in recent years with significant breakthroughs, especially in the EUV technology within the semiconductor industry. The Combination and collaboration will help accelerate Canatu’s growth in line with its strategy, enabling Canatu to continue progressing in all three exciting focus industries – semiconductor, automotive, and medical diagnostics – all of which are experiencing a major disruption and expand into new ones in the future. This is enabled by our patented technology, which allows us to apply Canatu CNT to a broad range of applications. Canatu is well-positioned to support industry shifts with its forerunner partners and to capitalize on new market opportunities, with the potential for significant returns on invested capital.”
The combination offers several benefits to Canatu, including enhanced credibility with stakeholders, supported by a strengthened balance sheet and the status of a publicly listed company, which is expected to positively impact business operations. As a public company, Canatu anticipates improved talent attraction and retention through more transparent incentives and better liquidity. The additional capital will enable Canatu to explore and capitalize on new market opportunities, driving further expansion and profitability. Public listing will also increase Canatu’s visibility, making it more recognizable and gaining attention from potential customers and strategic partners. Furthermore, collaboration with Lifeline SPAC I will leverage their expertise in financing and developing growth companies, along with their extensive network and proven track record in building international success stories.
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Read the orginal article: https://arcticstartup.com/lifeline-spac-makes-a-deal-to-acquire-canatu/
