Danimer Scientific and Eagle Beverage to Produce Biodegradable Drinking Straws for Quick Service Restaurants

Danimer Scientific and Eagle Beverage to Produce Biodegradable Drinking Straws for Quick Service Restaurants

BUSINESSWIRE

Private-label manufacturer will use Danimer Scientific’s NodaxTM PHA for marine degradable straws with plans to expand into adjacent product categories

Danimer Scientific, a leading developer and manufacturer of biodegradable materials, and Eagle Beverage Products, a specialty beverage manufacturer, today announced they will produce biodegradable drinking straws for the quick service restaurant (QSR) industry. The straws will degrade in environments ranging from industrial composting facilities to home compost units and oceans without leaving behind microplastics.

Eagle Beverage will manufacture the straws using Danimer Scientific’s proprietary biopolymer, Nodax™ polyhydroxyalkanoate (PHA). Tested by University of Georgia (UGA) researchers and the UGA New Materials Institute, PHA is made from sustainable materials, such as canola oil, to produce a proven biodegradable alternative to traditional petrochemical plastics. The straws are expected to be available for Eagle Beverage’s QSR customers to purchase in early 2021. After launching the straws, Eagle Beverage plans to explore expanding its offerings to include compostable food containers, packaging and more.

“Reducing the impact of plastic waste is a critical issue across the country, but consumers have limited ways to find eco-friendly alternatives at fast food restaurants,” said Eagle Beverage Vice President Aisha Kabani. “By partnering with Danimer Scientific to produce a reliably biodegradable straw, we will provide a cost-effective solution for restaurants to deliver guilt-free beverage enjoyment to their customers. Petrochemical straws break down into harmful microplastics and never fully degrade, but these PHA straws will completely degrade in a matter of months.”

The straws will be 100% made in the United States as Danimer Scientific produces Nodax PHA™ in its Kentucky- and Georgia-based facilities, while Eagle Beverage manufactures the straws in its Kent, Wash.-based facility. Danimer Scientific’s Nodax™ PHA possesses seven TÜV AUSTRIA certifications and statements of industrial and home compostability, is biodegradable in anaerobic conditions, soil, freshwater and marine environments and is 100% bio-based. All of Danimer Scientific’s biopolymers, including its Nodax™ PHA, are FDA approved for food contact.

“PHA has become the go-to material for sustainable alternatives to single-use plastic that do not sacrifice reliability or quality,” said Danimer Scientific CEO Stephen Croskrey. “Eagle Beverage has established robust relationships with some of the largest fast food chains in the country, so we look forward to partnering with them on supplying the industry with biodegradable straws.”

On October 5, 2020, Danimer Scientific and Live Oak Acquisition Corp. (NYSE: LOAK), a publicly-traded special purpose acquisition company, announced the entry into a definitive agreement for a business combination that will result in Danimer Scientific becoming a public company on the New York Stock Exchange. For more information on Danimer Scientific, visit www.DanimerScientific.com.

For more information on Eagle Beverage, visit www.Eagle-Beverage.com.

About Danimer Scientific

Danimer Scientific is a pioneer in creating more sustainable, more natural ways to make plastic products. For more than a decade, our renewable and sustainable biopolymers have helped create plastic products that are biodegradable and compostable. They return to nature instead of polluting our lands and waters. Our technology can be found in a vast array of plastic end products that people use every day. Applications for our biopolymers include additives, aqueous coatings, fibers, filaments, films, hot-melt adhesives and injection-molded articles, among others. We now hold more than 150 granted patents and pending patent applications in more than 20 countries for a range of manufacturing processes and biopolymer formulations. For more information, visit www.DanimerScientific.com.

About Eagle Beverage

Eagle Beverage Products has manufactured specialty beverage products in Kent, Wash. since 1970. Our product line includes cocktail mixers, energy drinks, coffee syrups, gourmet sauces, frappe mixes, hot chocolates, apple ciders, sweet spices, beverage straws and a variety of other products designed for food service. Our products are found under a variety of brand names and they are all manufactured in our Washington-based facility using premium ingredients and high-end quality packaging. For more information, visit www.Eagle-Beverage.com.

Forward-Looking Statements

Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. All statements, other than statements of present or historical fact included in this press release, regarding Live Oak Acquisition Corp.’s (“Live Oak”) proposed acquisition of Danimer Scientific, Live Oak’s ability to consummate the transaction, the benefits of the transaction and the combined company’s future financial performance, as well as the combined company’s growth plans and strategy, future operations, estimated financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Danimer Scientific’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Danimer Scientific. These forward-looking statements are subject to a number of risks and uncertainties, including those discussed in Live Oak’s registration statement on Form S-4, filed with the Securities and Exchange Commission (the “SEC”) on October 28, 2020 (the “Registration Statement”), under the heading “Risk Factors,” and other documents Live Oak has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. In addition, forward-looking statements reflect Danimer Scientific’s expectations, plans, or forecasts of future events and views as of the date of this press release. Danimer Scientific anticipates that subsequent events and developments will cause its assessments to change. However, while Danimer Scientific may elect to update these forward-looking statements at some point in the future, Danimer Scientific specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Danimer Scientific’s assessments of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements

Important Information for Investors and Stockholders

In connection with the proposed transactions, Live Oak has filed the Registration Statement on Form S-4 with the SEC, which includes a preliminary proxy statement, to be distributed to holders of Live Oak’s common stock in connection with Live Oak’s solicitation of proxies for the vote by Live Oak’s stockholders with respect to the proposed transactions and other matters as described in the Registration Statement, as well as a prospectus relating to the offer of the securities of Live Oak to be issued in connection with the proposed transactions. After the Registration Statement has been filed and declared effective, Live Oak will mail a definitive proxy statement, when available, to its stockholders. Investors and security holders and other interested parties are urged to read the proxy statement/prospectus, any amendments thereto and any other documents filed with the SEC carefully and in their entirety when they become available because they will contain important information about Live Oak, Danimer Scientific and the proposed transactions. Investors and security holders may obtain free copies of the preliminary proxy statement/prospectus and definitive proxy statement/prospectus (when available) and other documents filed with the SEC by Live Oak through the website maintained by the SEC at http://www.sec.gov, or by directing a request to: Live Oak Acquisition Corp., 774A Walker Rd., Great Falls, VA 22066 or (901) 985-2865. The information contained on, or that may be accessed through, the websites referenced in this press release is not incorporated by reference into, and is not a part of, this press release.

Participants in the Solicitation

Live Oak and Danimer Scientific and their respective directors and certain of their respective executive officers and other members of management and employees may be considered participants in the solicitation of proxies with respect to the proposed transactions. Information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is, and will be, included in the Registration Statement and other relevant materials filed, and to be filed, with the SEC regarding the proposed transactions. Stockholders, potential investors and other interested persons should read the Registration Statement carefully before making any voting or investment decisions. When available, these documents can be obtained free of charge from the sources indicated above.

Growth-focused SPAC Live Oak Acquisition II files for a $200 million IPO

Growth-focused SPAC Live Oak Acquisition II files for a $200 million IPO

NASDAQ

Live Oak Acquisition II, the second blank check company formed by Live Oak Merchant Partners targeting a high-growth business, filed on Wednesday with the SEC to raise up to $200 million in an initial public offering.

The Memphis, TN-based company plans to raise $200 million by offering 20 million units at $10. Each unit consists of one share of common stock and one-third of one warrant, exercisable at $11.50. Atalaya Capital Management intends to purchase up to $15 million worth of units in the offering. At $10 per unit, Live Oak Acquisition II would command a market value of $250 million.

The company is led by CEO Richard Hendrix and President Gary Wunderlich, the co-founders of Live Oak Merchant Partners, as well as Chairman John Amboian, the founder of JA Capital Advisors, and CFO Andrea Tarbox, who was previously the CFO of KapStone Paper & Packaging (formerly NYSE: KS). Live Oak Acquisition II intends to target companies with above industry-average growth and enterprise values between $500 million and $1.5 billion.

The group's previous SPAC, Live Oak Acquisition (LOAK; +14% from $10 offer price) went public this past May and recently announced a merger agreement with Danimer Scientific.

Live Oak Acquisition II was founded in 2020 and plans to list on the NYSE under the symbol LOKB.U. The company filed confidentially on September 18, 2020. Jefferies and BofA Securities are the joint bookrunners on the deal.

Maker of biodegradable utensils and straws gets Memphis boost

Maker of biodegradable utensils and straws gets Memphis boost

DAILY MEMPHIAN

A Georgia company believes it has the solution to the environmental scourge of petroleum-based plastic products that litter the Earth’s surface and seas: plant-based plastic that degrades naturally.

It’s producing commercial quantities for the food service industry at a Kentucky plant and is poised to grow through a proposed merger with a Memphis-linked company.

Privately held Danimer Scientific, headquartered in Bainbridge, Georgia, and publicly traded Live Oak Acquisition Corp., led by Memphian Gary Wunderlich, announced a definitive merger agreement on Monday, Oct. 5.

Live Oak, a blank check company that exists to merge with and capitalize an existing company, proposes to bring $410 million and publicly traded status to Danimer Scientific, if the merger is approved by shareholders and regulators.

The money would be used to ramp up capacity at the plant in Winchester, Kentucky, to meet what Wunderlich calls an “almost unlimited” demand for plastic products that disintegrate naturally in the environment.

Danimer produces a proprietary material branded Nodax, a biodegradable plastic made from an enzyme derived from canola oil. The scientific name for the polymer is polyhydroxyalkanoate or PHA. Danimer’s current production is booked by customers including food industry giants such as PepsiCo and Nestle.

The proposed merger would combine Danimer Scientific with Live Oak, a Virginia-based special purpose acquisition company that went public with a $200 million initial public offering in May.

Gary Wunderlich

Wunderlich, longtime Memphis businessman and investment firm veteran, is president of Live Oak Acquisitions. He and his colleagues spent months looking for a company to merge with, vetting more than 50 potential partners, Wunderlich said.

What set Danimer Scientific apart was the fact it’s already in commercial production of biodegradable plastic, the market’s enormous potential in the market and the opportunity to address a pressing environmental issue, Wunderlich said.

In addition to the $200 million raised in the initial public offering, Live Oak has corralled commitments for another $210 million from institutional investors in Danimer stock once the transaction closes and Danimer Scientific becomes publicly traded. The $210 million includes certain funds managed by affiliates of Apollo, Federated Hermes Kaufmann Small Cap Fund and more than $50 million from Live Oak affiliates.

Investors include Memphis businessman Andy Cates, who is chairman of the board of Memphis Fourth Estate Inc., the nonprofit that operates The Daily Memphian. Cates and a partner initially put Live Oak in touch with Danimer as a potential merger candidate.

Wunderlich was chief executive officer of Wunderlich Securities until he sold it in 2018 to B. Riley Financial Inc., to create B. Riley Wealth Management.

Of the Danimer merger, Wunderlich said, “We verified the science and we talked to customers. We talked to Pepsi, we talked to Nestle, we talked to WinCup, GenPak, and got incredible customer confirmation, basically saying Danimer has cracked the code on PHA and they’re big fans of Danimer and hopeful they can increase capacity to meet the demand that they have.”

“We’re seeing almost unlimited demand, just a function of raising capital to build capacity to meet it,” Wunderlich said.

“And they’re actually in business today. They’re selling product. You can buy straws that are made with Danimer resin at Walmart today, so they have clearly commercialized it and have basically a proven technology,” Wunderlich added.

In August, Danimer won an Innovation in Bioplastics award for its work with WinCup to develop PHA-based straws and stirrers. WinCup food service products markets the straws under the brand name phade, “the straw that goes to work then goes away.”

“A lot of the other things we were looking at were still pre-revenue, an earlier stage than we were comfortable with, had some additional financing needs we weren’t sure we could address,” Wunderlich said.

The companies issued a joint press release Monday morning that said the merger would enable Danimer to increase production 10-fold by 2025, going from 20 million pounds a year to 200 million pounds a year. Management is forecasting revenue of more than $500 million in 2025.

Wunderlich said the addressable market for Danimer’s product is estimated at 500 billion pounds a year.

Wunderlich said he would not be involved in management of the new company after closing.

Under the merger agreement, Live Oak chief executive officer Rick Hendrix would join the Danimer board, and John Amboian, non-executive chairman of Live Oak, would become the board’s lead independent director.

Danimer’s current senior management team would continue to lead the new company, which would trade on the New York Stock Exchange. Danimer chief executive officer Stephen E. Croskrey would also serve as board chairman.

In a joint press release Monday, Danimer’s product is touted as “the first PHA polymer to be certified as marine degradable, the highest standard of biodegradability, which verifies the material will fully degrade in ocean water without leaving behind harmful microplastics. “

“As a result, Nodax offers a better beginning-of-life and end-of-life cycle than any of today’s traditional plastics, eliminates the need for recycling and can replace the 80% of plastics that are never recycled or incinerated.”

Croskrey said, “We are excited to partner with Live Oak and transition Danimer to be a public company. We are at an inflection point in our growth trajectory and this transaction will fuel the next phase of our rapid commercial expansion.”

“Our research-based approach to creating environmentally responsible solutions has attracted a blue chip, multinational customer base and our partnership with Live Oak will allow us to further scale production up to meet strong customer demand for our technology,” Croskrey said.

“We believe PHA has the ability to eliminate the pollution caused by single use plastics worldwide, a potentially remarkable achievement. We are well positioned to further expand our 100% biodegradable products to a wide range of plastic and specialty applications, with a long runway for profitable global growth.”

Live Oak CEO Hendrix said, “Danimer represents a unique and compelling investment opportunity with take-or-pay contracted revenue from a blue chip client base for fully biodegradable plastic resin that addresses one of the world’s most significant environmental challenges.”

“PHA adoption is benefiting from powerful tailwinds as the result of widespread corporate commitments and evolving consumer preferences for ecofriendly packaging solutions that address the worldwide problem of plastic waste. We believe Danimer is poised for rapid and sustained growth with a fully financed capacity expansion plan and proprietary customer applications,” Hendrix said.

The release said the deal implies an equity valuation at closing of about $890 million for Danimer. It’s anticipated the company will have about $385 million in unrestricted cash on hand to fund growth and buildout of a contemplated new facility. The current plant was previously operated as an algae fermentation facility by Alltech.

Danimer Scientific, a Next Generation Bioplastics Company, to Become a Public Company Through Merger with Live Oak Acquisition Corporation

Danimer Scientific, a Next Generation Bioplastics Company, to Become a Public Company

• Danimer Scientific has entered into a definitive merger agreement with Live Oak Acquisition Corp. (NYSE: LOAK)

• Pioneer in creating fully biodegradable and compostable bioplastics providing a cleaner, healthier, and environmentally responsible alternative to fossil fuel-based plastics

• High-growth industry leader with blue chip customer contracts demonstrating large-scale demand for PHA-based biodegradable plastics

• Institutional investors commit to invest $210 million at closing; including certain funds managed by affiliates of Apollo, Federated Hermes Kaufmann Small Cap Fund, and over $50 million from Live Oak affiliates

BAINBRIDGE, GA and GREAT FALLS, VA – October 5, 2020 – Danimer Scientific (“Danimer” or “the Company”), a next generation bioplastics company focused on the development and production of biodegradable materials, and Live Oak Acquisition Corp. (NYSE: LOAK) (“Live Oak”), a publicly-traded special purpose acquisition company, announced today a definitive agreement for a business combination that would result in Danimer Scientific becoming a public company. Upon closing of the transaction, the combined company will be renamed Danimer Scientific and is expected to remain listed on the NYSE under a new ticker symbol. Danimer will continue to be led by Stephen E. Croskrey, Danimer’s current Chief Executive Officer.

Danimer Scientific is a pioneer in creating environmentally responsible and natural alternative solutions to traditional petroleum-based resins. The Company’s signature polymer, NodaxÔ PHA (polyhydroxyalkanoate), is a 100% biodegradable, renewable, and sustainable plastic produced using canola oil as a primary feedstock. NodaxÔ PHA is the first PHA polymer to be certified as marine degradable, the highest standard of biodegradability, which verifies the material will fully degrade in ocean water without leaving behind harmful microplastics. As a result, NodaxTM offers a better beginning-of-life and end-of-life cycle than any of today’s traditional plastics, eliminates the need for recycling and can replace the 80% of plastics that are never recycled or incinerated.

Danimer is currently producing and shipping NodaxTM at an industrial scale level from its existing facility in Winchester, Kentucky. The company has partnered with key plastics manufacturers and consumer products companies such as PepsiCo, Nestlé, Genpak, WinCup, Columbia Packaging Group and Plastic Suppliers Inc. as they transition a wide variety of plastic applications, including straws, food and beverage containers, flexible packaging, agricultural and medical applications, among others. Based on signed and pending contracts, the company is fully sold out of all production in its Kentucky facility and will use their increased capital base to significantly increase production, to meet the current and longterm demand of its customer base.

Danimer Investment Highlights:

• Leader in the rapidly expanding bioplastic industry, which currently represents less than an estimated 1% of the global plastics market

• Fully financed at closing of the merger to expand production capacity from 20 million pounds annually today to approximately 200 million pounds in 2025

• Intense demand from existing blue chip multinational customers supports management revenue forecast of over $500 million annually in 2025, with significantly increased profit margins by scaling existing production facilities

• Ownership of a portfolio of core patents purchased from Procter & Gamble in 2007, expanded to include numerous application-based patents, and now aggregating to more than 150 patents applicable in 20 countries

• $890 million of equity, $385 million of cash and only $20 million of pro forma debt provide ample flexibility to support abundant long-term growth opportunities, including further capacity additions domestically and internationally, as well as strategic partnerships and acquisitions of complementary technologies

• Highly experienced leadership team with long term tenure at the company and a board of directors with a proven record of creating shareholder value

“We are excited to partner with Live Oak and transition Danimer to be a public company,” said Stephen E. Croskrey, Chief Executive Officer of Danimer. “We are at an inflection point in our growth trajectory and this transaction will fuel the next phase of our rapid commercial expansion. Our research-based approach to creating environmentally responsible solutions has attracted a blue chip, multinational customer base and our partnership with Live Oak will allow us to further scale production to meet strong customer demand for our technology. We believe PHA has the ability to eliminate the pollution caused by single use plastics worldwide, a potentially remarkable achievement. We are well positioned to further expand our 100% biodegradable products to a wide range of plastic and specialty applications, with a long runway for profitable global growth.”

Rick Hendrix, Chief Executive Officer of Live Oak, commented: “Danimer represents a unique and compelling investment opportunity with take-or-pay contracted revenue from a blue-chip client base for fully bio-degradable plastic resin that addresses one of the world’s most significant environmental challenges. PHA adoption is benefiting from powerful tailwinds as the result of wide-spread corporate commitments and evolving consumer preferences for eco-friendly packaging solutions that address the worldwide problem of plastic waste. We believe Danimer is poised for rapid and sustained growth with a fully financed capacity expansion plan and proprietary customer applications.”

Transaction Overview

In addition to the gross amount of approximately $200 million held in Live Oak’s trust account (assuming no redemptions are effected), institutional investors, including certain funds managed by affiliates of Apollo Global Management, Inc. (NYSE:APO) (together with its consolidated subsidiaries, “Apollo”) and Federated Hermes Kaufmann Small Cap Fund, have committed to a private investment of $210 million in 3 Class A common stock of the combined company that will close concurrently with the business combination. Affiliates of Live Oak have committed to purchasing over $50 million of the private investment. The transaction implies an equity valuation for Danimer of approximately $890 million at closing. It is anticipated that the combined company will have approximately $385 million of unrestricted cash on the balance sheet to fully fund future, planned growth, including the expansion of its current facility and the build out of its contemplated greenfield facility. The Boards of Directors of Live Oak and Danimer have unanimously approved the transaction, and holders representing a majority of Danimer stock have signed voting and support agreements agreeing to vote for the transaction. The transaction will require the approval of the stockholders of both Live Oak and Danimer, and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. Danimer’s current senior management team will continue to lead the Company after the transaction closes. In addition to serving as Chief Executive Officer, Mr. Croskrey will be named Chairman of the Board. Upon closing of the transaction, Rick Hendrix, Chief Executive Officer of Live Oak, will join Danimer’s Board, and John Amboian, Non-Executive Chairman of Live Oak, will serve on the Board as Lead Independent Director. Additional information about the proposed transaction, including a copy of the merger agreement and investor presentation, will be provided in a Current Report on Form 8-K to be filed by Live Oak with the Securities and Exchange Commission and will be available at www.sec.gov. Advisors Jefferies is serving as exclusive financial advisor, sole private placement agent and capital markets advisor to Live Oak. Morgan Stanley is serving as capital markets advisor to Live Oak. Houlihan Lokey is serving as financial advisor to Danimer. Mayer Brown LLP is serving as legal advisor to Live Oak. Kane Kessler, PC is serving as legal counsel to Danimer. Investor Conference Call Information Live Oak and Danimer will host a joint investor conference call to discuss the proposed transaction on Monday, October 5, 2020 at 9:00 am Eastern time. Interested parties may listen to the prepared remarks call via telephone by dialing 1-877-407-9208, or for international callers, 1-201-493-6784. For those who are unable to listen to the live call, a replay will be available on the Live Oak website after the call at https://www.liveoakacq.com/. The live conference call webcast, a related investor presentation with more detailed information regarding the proposed transaction and a transcript of the investor call will also be available at https://www.liveoakacq.com/. The investor presentation will also be furnished today to the SEC, which can be viewed at the SEC’s website at www.sec.gov. 4

About Danimer Scientific

Danimer Scientific is a pioneer in creating more sustainable, more natural ways to make plastic products sold under the proprietary NodaxTM brand name. For more than a decade, the Company’s renewable and sustainable biopolymers have helped create plastic products that are 100% biodegradable and compostable. Danimer’s products return to nature instead of polluting our lands and waters. The Company’s technology can be found in a vast array of plastic end-use products that people use every day. Applications for our biopolymers include additives, aqueous coatings, fibers, filaments, films, and injection-molded articles, among others. The Company now holds more than 150 patents in nearly 20 countries for a range of manufacturing processes and biopolymer formulations. For more information, visit www.DanimerScientific.com.

About Live Oak Acquisition Corp.

Live Oak raised $200 million in May 2020 and its securities are listed on the NYSE under the tickers “LOAK,” “LOAK.U” and “LOAK WS.” Live Oak Acquisition Corp. is a blank check company whose business purpose is to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. Live Oak is led by an experienced team of managers, operators and investors who have played important roles in helping build and grow profitable public and private businesses, both organically and through acquisitions, to create value for stockholders. Live Oak’s team has experience operating and investing in a wide range of industries, bringing us a diversity of experiences as well as valuable expertise and perspective. For more information please visit https://www.liveoakacq.com/.

Forward-Looking Statements

Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. All statements, other than statements of present or historical fact included in this presentation, regarding Live Oak’s proposed business combination with Danimer Scientific, Live Oak’s ability to consummate the transaction, the benefits of the transaction and the combined company’s future financial performance, as well as the combined company’s strategy, future operations, estimated financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forwardlooking statements. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the respective management of Live Oak and Danimer Scientific and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Live Oak and Danimer Scientific. Potential risks and uncertainties that could cause the actual results to differ materially from those expressed or implied by forward-looking statements include, but are not limited to, changes in domestic and foreign 5 business, market, financial, political, and legal conditions; the inability of the parties to successfully or timely consummate the proposed transaction, including the risk that any regulatory approvals are not obtained, are delayed or are subject to unanticipated conditions that could adversely affect the combined company or the expected benefits of the proposed transaction or that the approval of the stockholders of Live Oak or Danimer Scientific is not obtained; failure to realize the anticipated benefits of the proposed transaction; risks relating to the uncertainty of the projected financial information with respect to Danimer Scientific; the amount of redemption requests made by Live Oak stockholders; the overall level of consumer demand for Danimer Scientific’s products; general economic conditions and other factors affecting consumer confidence, preferences, and behavior; disruption and volatility in the global currency, capital, and credit markets; the financial strength of Danimer Scientific’s customers; Danimer Scientific’s ability to implement its business strategy; changes in governmental regulation, Danimer Scientific’s exposure to intellectual property, product liability or product warranty claims and other loss contingencies; disruptions and other impacts to Danimer Scientific’s business, as a result of the COVID-19 global pandemic and government actions and restrictive measures implemented in response; stability of Danimer Scientific’s manufacturing facilities and suppliers, as well as consumer demand for its products, in light of disease epidemics and health-related concerns such as the COVID-19 global pandemic; the impact that global climate change trends may have on Danimer Scientific and its suppliers and customers; Danimer Scientific’s ability to protect patents, trademarks and other intellectual property rights; any breaches of, or interruptions in, Danimer Scientific’s information systems; fluctuations in the price, availability and quality of raw materials and contracted products as well as foreign currency fluctuations; Danimer Scientific’s ability to utilize potential net operating loss carryforwards; changes in tax laws and liabilities, tariffs, legal, regulatory, political and economic risks. More information on potential factors that could affect our financial results is included from time to time in Live Oak’s public reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that neither Live Oak nor Danimer Scientific presently know, or that Live Oak nor Danimer Scientific currently believe are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Live Oak’s and Danimer Scientific’s expectations, plans, or forecasts of future events and views as of the date of this press release. Live Oak and Danimer Scientific anticipate that subsequent events and developments will cause Live Oak’s and Danimer Scientific‘s assessments to change. However, while Live Oak and Danimer Scientific may elect to update these forward-looking statements at some point in the future, Live Oak and Danimer Scientific specifically disclaim any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing Live Oak’s or Danimer Scientific’s assessments of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements. Important Information and Where to Find It In connection with the proposed transactions, Live Oak intends to file a registration statement on Form S-4, including a proxy statement/prospectus/information statement (the “Registration Statement”), with the SEC, which will include a preliminary proxy statement to be distributed to holders of Live Oak’s 6 Common Stock in connection with Live Oak’s solicitation of proxies for the vote by Live Oak’s stockholders with respect to the proposed transactions and other matters as described in the Registration Statement, a prospectus relating to the offer of the securities to be issued to the Company’s Shareholders in connection with the proposed transactions, and an information statement to Company’s Shareholders regarding the proposed transactions. After the Registration Statement has been filed and declared effective, Live Oak will mail a definitive proxy statement/prospectus/information statement, when available, to its stockholders. Investors and security holders and other interested parties are urged to read the proxy statement/prospectus/information statement, any amendments thereto and any other documents filed with the SEC carefully and in their entirety when they become available because they will contain important information about Live Oak, the Company and the proposed transactions. Investors and security holders may obtain free copies of the preliminary proxy statement/prospectus and definitive proxy statement/prospectus (when available) and other documents filed with the SEC by Live Oak through the website maintained by the SEC at http://www.sec.gov, or by directing a request to: Live Oak Acquisition Corp., 774A Walker Rd, Great Falls, VA 22066 or (901) 985-2865. Participants in the Solicitation Live Oak and the Company and their respective directors and certain of their respective executive officers and other members of management and employees may be considered participants in the solicitation of proxies with respect to the proposed transactions. Information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be included in the Registration Statement and other relevant materials to be filed with the SEC regarding the proposed transactions when they become available. Stockholders, potential investors and other interested persons should read the Registration Statement carefully when it becomes available before making any voting or investment decisions. When available, these documents can be obtained free of charge from the sources indicated above.

The Hot IPO Trend of 2020: Pay Up Now, Acquire Something Later

The Hot IPO Trend of 2020: Pay Up Now, Acquire Something Later

WALL STREET JOURNAL

The companies raising the most money in the IPO market right now have no revenue, aren’t profitable and lack long-term business plans.

That is by design: They are blank-check companies, whose purpose is to raise money for acquisitions.

So far this year, these special-purpose acquisition companies, or SPACs, have raised $6.5 billion, on pace for their biggest year ever, according to Dealogic. In April, 80% of all money raised for U.S. initial public offerings went to blank-check firms, compared with an average of 9% over the past decade.

The jump shows investors are betting there will be good deals to scoop up when the coronavirus subsides, but remain hesitant to put cash into companies going public soon.

“The IPO asset class in general is the last to recover in volatile periods,” said Shiv Vasisht, co-head of Global Strategic Equity Solutions at Bank of America Corp.

IPOs in the U.S. raised about $2.6 billion in April, according to Dealogic. Of that, $2.2 billion went toward blank-check companies. This month through Tuesday, SPACs had raised $575 million, Dealogic data show.

Blank-check companies raise money by going public and then hunt for a company in which to invest the funds they raised. They typically have two years to identify a target, and the investment is subject to shareholder approval.

Among the blank-check companies to go public in the past two months were a pair from Social Capital Hedosophia Holdings. SPCE 0.22% Combined, they raised more than $1 billion with the intention of acquiring technology companies.

Social Capital Hedosophia last year made a splash when its first blank-check company invested in Virgin Galactic, Richard Branson’s space-tourism venture. Virgin Galactic’s stock soared after it went public by way of the Social Capital Hedosophia firm, and recently traded roughly 60% above its official October listing.

Still, blank-check companies’ stock performance has lagged in recent years. From 2010 to 2017, the companies underperformed the broader market by about 3% annually for the first three years after their IPO, according to an analysis of 92 blank-check listings in that period by University of Florida finance professor Jay Ritter, who studies IPOs. Meanwhile, traditional IPOs typically outperform the broader market.

Since the start of March, roughly a dozen blank-check firms have tapped the U.S. public market.

Live Oak Acquisition Corp. is one of them. Its executives met with about 30 potential investors in late February to test the waters, according to Chief Financial Officer and director Andrea Tarbox. Then coronavirus rattled the U.S., shutting down corporate offices and even the New York Stock Exchange trading floor. The day of the company’s call to plan a virtual roadshow in March, the Dow Jones Industrial Average tumbled nearly 3,000 points.

Live Oak waited out the turbulence. Last week the company listed its shares following a two-day virtual roadshow. Instead of ringing the NYSE bell, Ms. Tarbox rang a bell at her beach house in South Carolina to celebrate.

The firm is eager to start evaluating targets, which will include companies in financial services, industrials, business services and real estate. Ms. Tarbox said she hopes that by the time the company’s initial work is done plane travel will be less forbidding so Live Oak can better vet potential acquisitions.

In the case of Social Capital Hedosophia, at least one of its vehicles is likely to find a deal sooner rather than later, a person familiar with the matter said, given the state of the IPO market and the cash needs of startups.

At the same time, the IPO market may be showing signs of thawing. As the U.S. stock market has steadied—in past week the tech-heavy Nasdaq Composite briefly turned positive on the year—so has the appetite for some new listings. Bankers say bigger IPOs, such as for Albertsons Cos., could take shape as early as this month.

Wunderlich forms 'blank check company,' IPO priced at $200M

Wunderlich forms 'blank check company,' IPO priced at $200M

MEAGAN NICHOLS | MEMPHIS BUSINESS JOURNAL

Raise money through an initial public offering (IPO); acquire an existing company.

That is the goal of a special purpose acquisition company (SPAC) — also called a “blank check company” — and that is now the objective of one well-known Memphis businessman.

Gary Wunderlich, who founded the investment firm Wunderlich Securities in 1996, is no stranger to closing big deals. He sold that company to B. Riley Financial Inc. in 2017 for $67 million.

And rather than retire, he — along with Rick Hendrix and Robert Feinstein, both based in Washington, D.C. — founded Live Oak Merchant Partners. An advisory services and capital business, Live Oak was established to primarily work with middle-market companies.

Now, Wunderlich and partners are taking their latest venture a step further.

“Forming a SPAC is a natural extension of what we are doing at Live Oak Merchant Partners,” Wunderlich said. “We have been very busy closing an M&A transaction, financing our first portfolio company, and now issuing the SPAC. With the SPAC, we are looking for a $500 million to $1.5 billion company that has a need for liquidity and wants to become a public company."

Live Oak Acquisition Corp. was established as a blank-check company with an IPO pricing of $200 million. That offering was priced at 20,000,000 units at $10 per unit. The units were listed on the New York Stock Exchange under the ticker symbol “LOAK.U” on May 6.

Under this corporation, Hendrix will serve as the CEO, Wunderlich as president, Andrea Tarbox as the CFO, and Ross Berner as COO.

Jefferies LLC is the book-running manager for the offering. BMO Capital Markets Corp. and BTIG LLC are the acting co-managers.

While Live Oak Acquisition is open to pursuing a company in any industry, it plans to focus its search on those in the financial services, industrial, business services, and real estate sectors.

Wunderlich Co-Founds New Financial Firm

Wunderlich Co-Founds New Financial Firm

January 17, 2020

THE DAILY MEMPHIAN

Gary Wunderlich and Rick Hendrix have formed a new company, Live Oak Merchant Partners, that provides private investment and advisory services to “best in class” middle-market companies.

“Our goal is to support and advise companies ready for their next phase of growth,” Wunderlich said in a release.

“We look forward to putting our experience to work, particularly during a critical point in a company’s trajectory,” he said. “Though we are working in a variety of industries, our shared end goal for Live Oak portfolio companies is to support them in creating exceptional outcomes for customers, employees, and owners.”

Wunderlich had founded Wunderlich Securities, a full-service investment banking and brokerage firm, in Memphis in 1996. He sold the firm in 2017 to Los Angeles-based B. Riley Financial.

Hendrix was chairman and chief executive of FBR & Co., an investment banking and brokerage firm, from 2009 until it merged in 2017 with B. Riley Financial. He remains a senior adviser to Crestview Partners, a private equity firm, according to the Live Oak website.

Another managing partner of Live Oak Merchant Partners is Robert Feinstein. He previously was partner of Compass Point, which started an investment banking group and grew from four to 55 employees during his 11 years there.

According to its website, Live Oak Merchant Partners has offices in Memphis, McLean, Va., and Great Falls, Va.

For more information, visit liveoakmerchant.com.

Former FBR execs partner with Memphis businessman to launch new company

Former FBR execs partner with Memphis businessman to launch new company

January 13, 2020

MEMPHIS BUSINESS JOURNAL

A year ago, Gary Wunderlich started asking himself the “what’s next” career question.

He has since found the answer.

A longtime prominent Memphis businessman, Wunderlich founded investment firm Wunderlich Securities in 1996. He led the company for more than 20 years, until he sold it to to B. Riley Financial Inc. in 2017 for $67 million. Wunderlich left the business toward the end of 2018, once the integration and rebrand to B. Riley were completed.

In November 2018, Wunderlich sat down with the Memphis Business Journal to discuss where he thought his next venture might take him. At the time, the self-described workaholic, who admitted he would never retire, said he was open to anything.

Fast-forward to the present and Wunderlich, along with partners Rick Hendrix and Robert Feinstein — both based out of Washington, D.C. — have founded a new business called Live Oak Merchant Partners.

Live Oak provides advisory services and capital to businesses and will primarily focus on working with middle-market companies that have a $5 million to $50 million capital need.

“We were very deliberate about using the words ‘Merchant Partners’ meaning, hopefully, we can provide more than just capital,” Wunderlich said. “We truly can be partners and share our collective experiences — both good and bad — over the past 25 years, as well as provide some capital.”

Hendrix was previously the CEO of FBR & Co. and has worked closely with Wunderlich over the years. In fact, Wunderlich and Hendrix had decided to merge their businesses when, right before that happened, B. Riley acquired FBR (Friedman, Billings, Ramsey) and then acquired Wunderlich Securities.

Feinstein most recently served as a principal at Compass Point. Prior to that he was a founding partner of FBR.

“Building a business is never easy,” Hendrix said. “But, it’s exciting and it’s fun and to do it with somebody [like Gary Wunderlich] with whom you have worked for a long time and have a lot of professional, personal regard for. It makes what can be difficult a lot easier and certainly a lot more fun.”

Typically in the private equity world, firms raise a massive amount of money and create funds that are then required to be invested in a set amount of time. This is where the partners of Live Oak think they have an advantage — they don’t have a fund and thus aren’t pressured by investors to rush a deal.

And since a large chunk of money on every deal is their own capital, it means they can — and will — be choosey.

“We certainly feel like this structure — without a fund — allows us to be able to find the best transactions that we see and get them in front of investors,” Hendrix said. “Sometimes that might be three or four [deals] a year, and sometimes, it’s possible you go a year without making an investment — and that’s OK.”

Over the past year, Wunderlich said his thoughts on his next career move changed monthly, if not weekly.

He was approached by both local and regional companies about leaderships positions, which Wunderlich said was flattering, but as his conversations with Hendrix continued he knew the formation of what is now Live Oak felt the most natural.

Live Oak takes Wunderlich back to his first job out of college when he worked for Progressive Capital, he said. That company was focused on raising capital for one-off projects.

“That was something I really loved doing — and, in fact, continued to do when we formed Wunderlich, for a long time,” he said. “It was very natural for me to come back to where I started, from a capital formation standpoint.”

But, don’t expect any of the partners to build Live Oak into a behemoth company like the ones they previously ran. They intend to keep operations small and plan to hire a few admin and analysts — tops. The business will be run out of both Memphis and the D.C. area.

As for the firm’s name, Hendrix said they tried out several, but ultimately felt Live Oak best represented the type of business they intend to grow.

“The strength and longevity that those trees have made: It feels like a really good name for what we are trying to do,” Hendrix said.

Private Equity and Investment Banking Veterans Introduce Live Oak Merchant Partners

Private Equity and Investment Banking Veterans Introduce Live Oak Merchant Partners

January 13, 2020

Financial veterans Rick Hendrix and Gary Wunderlich are proud to announce the formation of a new venture, Live Oak Merchant Partners, a private investment and advisory firm serving best-in-class middle-market companies.

Live Oak Merchant Partners draws upon over 90 collective years of experience and accompanying resources, having invested in businesses, served as trusted advisors, and created sustainable shareholder value. The firms’ managing partners have provided capital and advice to family-owned, financial sponsor-backed, and public companies, collectively ranging from $5M to over $5B in equity value.

“Our goal is to support and advise companies ready for their next phase of growth,” said co-founder Gary Wunderlich. “We look forward to putting our experience to work, particularly during a critical point in a company’s trajectory. Though we are working in a variety of industries, our shared end goal for Live Oak portfolio companies is to support them in creating exceptional outcomes for customers, employees, and owners.”

The Live Oak team comprises former CEOs and senior executives with decades of experience leading teams and businesses through growth, restructuring, capital formation, and successful exits.

Rick Hendrix serves as co-founder and managing partner of Live Oak Merchant Partners. Prior to co-founding Live Oak, Mr. Hendrix served as the chairman and CEO of FBR & Co (NYSE: FBRC), a full-service investment banking and brokerage firm, from 2009 until its successful merger in June 2017 with B. Riley Financial, Inc. (NASDAQ: RILY).  Prior to becoming CEO of FBR, Hendrix served in a number of different senior executive roles within the investment banking and merchant banking divisions of FBR.  Prior to joining FBR in 1999, Hendrix spent 12 years with PNC Bank in its commercial and investment banking groups. 

Over the course of his career, Hendrix has worked extensively with issuers and investors focused on companies in the financial services, real estate, energy, industrial, and business and consumer services sectors. He has led dozens of initial equity offerings, raising tens of billions of dollars for founder-led and sponsor-backed companies. During his tenure as CEO of FBR, Mr. Hendrix also was instrumental in the founding and initial capitalization of numerous “Newcos” that built successful franchises within the banking, insurance, and real estate sectors. Additionally, Hendrix has considerable experience advising chief executives, boards of directors, and large shareholders regarding strategy, capital structure, and capital access.

Gary Wunderlich is co-founder and managing partner of Live Oak Merchant Partners. Wunderlich is focused on investment originations and investor relations. Prior to co-founding Live Oak, Wunderlich was the founder and CEO of Wunderlich Securities, Inc., a full-service investment banking and brokerage firm, from 1996 until its successful merger in July 2017 with B. Riley Financial, Inc. (NASDAQ: RILY). Following the merger, Wunderlich served as a director of RILY from August 2017 to July 2018 and remained CEO of Wunderlich (rebranded B Riley Wealth) until November of 2018.

As CEO of Wunderlich, Wunderlich was involved in all aspects of company growth from a virtual start-up into a full-service investment bank. Firm-wide revenues grew to over $120 million in 2017, reflecting a CAGR of approximately 30% over 23 years. In addition to wealth management and institutional fixed income, Wunderlich oversaw an investment banking department that was a manager or co-manager of 151 transactions raising over $21.5 billion in proceeds for issuers in the three years prior to its merger with B Riley. Wunderlich Securities, Inc. was ranked as one of the fastest growing private companies in America by Inc. Magazine in 2010, 2011, 2012 and 2013.

Robert Feinstein is a managing partner of Live Oak Merchant Partners. Previously, Feinstein was a Partner of Compass Point, which grew from four employees to 55 during his 11-year tenure and launched an investment banking group that has been an underwriter for initial public offerings, follow on offerings, and 144A transactions, completing over one hundred transactions while working with a vast array of financial service companies.

Prior to joining Compass Point in 2008, Feinstein was a founding partner at Friedman, Billings, Ramsey & Co., Inc. At FBR, Mr. Feinstein held senior positions in the firm’s Institutional Sales Department, and most recently served as Senior Managing Director of Sales, Private Wealth. Prior to his 20 years at FBR, Feinstein was a Senior Vice President at Johnston, Lemon & Co. in their institutional sales group.

Gary Wunderlich starts new venture with D.C. partners

Gary Wunderlich starts new venture with D.C. partners

January 09, 2020

WASHINGTON BUSINESS JOURNAL

A year ago, Gary Wunderlich started asking himself the “what’s next” career question.

He has since found the answer.

A longtime prominent Memphis businessman, Wunderlich founded investment firm Wunderlich Securities in 1996. He led the company for more than 20 years, until he sold it to to B. Riley Financial Inc. in 2017 for $67 million. Wunderlich left the business toward the end of 2018, once the integration and rebrand to B. Riley were completed.

In November 2018, Wunderlich sat down with the Memphis Business Journal to discuss where he thought his next venture might take him. At the time, the self-described workaholic, who admitted he would never retire, said he was open to anything.

Fast-forward to the present and Wunderlich, along with partners Rick Hendrix and Robert Feinstein — both based out of Washington, D.C. — have founded a new business called Live Oak Merchant Partners.

Live Oak provides advisory services and capital to businesses and will primarily focus on working with middle-market companies that have a $5 million to $50 million capital need.

“We were very deliberate about using the words ‘Merchant Partners’ meaning, hopefully, we can provide more than just capital,” Wunderlich said. “We truly can be partners and share our collective experiences — both good and bad — over the past 25 years, as well as provide some capital.”

Hendrix was previously the CEO of FBR & Co. and has worked closely with Wunderlich over the years. In fact, Wunderlich and Hendrix had decided to merge their businesses when, right before that happened, B. Riley acquired FBR (Friedman, Billings, Ramsey) and then acquired Wunderlich Securities.

Feinstein most recently served as a principal at Compass Point. Prior to that he was a founding partner of FBR.

“Building a business is never easy,” Hendrix said. “But, it’s exciting and it’s fun and to do it with somebody [like Gary Wunderlich] with whom you have worked for a long time and have a lot of professional, personal regard for. It makes what can be difficult a lot easier and certainly a lot more fun.”

Typically in the private equity world, firms raise a massive amount of money and create funds that are then required to be invested in a set amount of time. This is where the partners of Live Oak think they have an advantage — they don’t have a fund and thus aren’t pressured by investors to rush a deal.

And since a large chunk of money on every deal is their own capital, it means they can — and will — be choosey.

“We certainly feel like this structure — without a fund — allows us to be able to find the best transactions that we see and get them in front of investors,” Hendrix said. “Sometimes that might be three or four [deals] a year, and sometimes, it’s possible you go a year without making an investment — and that’s OK.”

Over the past year, Wunderlich said his thoughts on his next career move changed monthly, if not weekly.

He was approached by both local and regional companies about leaderships positions, which Wunderlich said was flattering, but as his conversations with Hendrix continued he knew the formation of what is now Live Oak felt the most natural.

Live Oak takes Wunderlich back to his first job out of college when he worked for Progressive Capital, he said. That company was focused on raising capital for one-off projects.

“That was something I really loved doing — and, in fact, continued to do when we formed Wunderlich, for a long time,” he said. “It was very natural for me to come back to where I started, from a capital formation standpoint.”

But, don’t expect any of the partners to build Live Oak into a behemoth company like the ones they previously ran. They intend to keep operations small and plan to hire a few admin and analysts — tops. The business will be run out of both Memphis and the D.C. area.

As for the firm’s name, Hendrix said they tried out several, but ultimately felt Live Oak best represented the type of business they intend to grow.

“The strength and longevity that those trees have made: It feels like a really good name for what we are trying to do,” Hendrix said.