Chicago-based LanzaTech, a carbon recycling company, today reported earnings for the 2Q24 period, including an update on its quarterly cash burn and additional financing in the form of a convertible note.
LanzaTech this week closed a new $40m investment by Carbon Direct Capital, a globally recognized investor focused on investing in carbon management companies.
The additional capital will be used to fund growth and working capital, and was invested pursuant to a convertible note purchase agreement which contemplates one or more closings for up to $150m of convertible notes.
LanzaTech continues to seek additional financing under the Convertible Note Purchase Agreement from certain accredited investors with whom the company has a preexisting substantive relationship.
Balance Sheet, Liquidity
As of June 30, 2024, LanzaTech had $75.8 million in total cash, restricted cash, and investments, compared to total cash of $92.3 million at the end of first-quarter 2024. As of August 7, 2024, post funding of the $40 million capital raise, LanzaTech has total cash in excess of $100 million.
Total cash burn in second-quarter 2024 was $16.5 million, which was down significantly as compared to $29.2 million for first-quarter 2024. The decrease in quarter-over-quarter was due to a number of large annual payments incurred in first-quarter 2024, including 2023 incentive compensation, the majority of 2024 insurance premiums, and others cash payments that are expensed throughout the year but funded in the first quarter.
