Nxu (NXU) shares soared more than 261% in early trading Thursday after the company agreed to acquire all outstanding shares of Verde Bioresins in an all-stock transaction.

At closing of the proposed merger, the combined entity will be renamed Verde Bioresins and will trade on Nasdaq under the ticker symbol "VRDE", the companies said Thursday, adding it will be managed by the Verde management team.

Pre-merger Verde shareholders will own about 95% of the combined entity, while Nxu shareholders will hold the remaining 5%, according to the joint statement. The combined company's board will consist of seven members, six to be appointed by Verde and one from Nxu, the companies also said.

The deal, which has been approved by both boards, is subject to shareholder approval and other closing conditions, Nxu and Verde said.

Price: 0.91, Change: +0.66, Percent Change: +261.24