Graf Industrial Corp. (NYSE: GRAF; GRAF WS; GRAF U), a special purpose acquisition company ("GRAF"), announced on April 8 that it is in negotiations relating to a potential business combination with a polypropylene recycling company (the "Target"), pursuant to which the Target would become a publicly-traded company (the "Transaction").
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GRAF has mailed to its stockholders of record as of March 19, 2020, a definitive proxy statement for a special meeting to approve an extension of time for GRAF to complete an initial business combination through July 31, 2020.
The Target's ground-breaking, patented recycling process, developed and licensed by a major multinational, separates color, odor and any other contaminants from plastic waste feedstock to transform it into the virgin-like resin. The Target's licensed process creates an opportunity to support closing the loop in the reuse of recycled plastics while making recycled plastics more accessible at scale to companies desiring to use a sustainable, recycled resin. This technology is being brought to market by a strong management team with deep expertise and a history of bringing disruptive technologies to market. Over the last two years, the Target has built a series of strategic partnerships with major multinational corporations and now has commitments for over four times the output of its first production facility.
The Target's revolutionary process holds the possibility to solve for the ongoing problem of recycling the 150+ billion pounds of PP produced every year, which has averaged a 5% rate of growth over the last five years, according to the Target. Consumer demand, combined with major multinational sustainability commitments, reinforced by new stringent recycled content restrictions globally, has led to substantial interest in, and demand for the Target's innovative capabilities. The Target has been recognized by the American Chemistry Council for its innovation in plastics recycling and has been recognized by a weekly news magazine with amongst the world's largest circulation as one of its top 100 inventions of the year.
About Graf Industrial Corp.
Graf Industrial Corp. is a blank check company incorporated to effect a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. GRAF was founded by James A. Graf and Michael E. Dee and consummated its initial public offering on the New York Stock Exchange on October 18, 2018. For more information, please visit www.grafacq.com.
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