Bolt Threads, a sustainable biomaterials company, has entered a definitive agreement to merge with Golden Arrow Merger Corp in a special purpose acquisition company (SPAC) deal that values Bolt Threads at USD 250 million.

Post-acquisition, the entity will have a combined valuation of USD 346.1 million. The deal, expected to bring in at least USD 35 million in gross proceeds, has received unanimous approval from both companies' boards of directors. It is subject to shareholder approval and standard closing conditions, with the closing targeted for Q1 2024.

Upon completion of the deal, the merged entity will be known as Bolt Projects Holdings, Inc. and is anticipated to trade on the Nasdaq with a fresh ticker BSLK.

Analyst QuickTake: In June this year, Bolt Threads announced that it halted the production of its mycelium-based leather alternative, Mylo, due to a lack of funding and inflationary pressures. However, it appears to have been successful in finalizing the deal to take the SPAC route to become a publicly traded company and raising the necessary capital to continue production and materialize its commercialization plans .