Global law firm White & Case LLP has advised USA Rare Earth, Inc. (NASDAQ: USAR) on raising US$75 million of equity capital via a private investment in public equity (PIPE) pursuant to a securities purchase agreement with a new fundamental institutional investor.
Under the terms of the securities purchase agreement, the company issued, for an aggregate purchase price of US$75 million, approximately 8.55 million shares of common stock, pre-funded warrants to purchase approximately 2.16 million shares of common stock and warrants to purchase 10.71 million shares of common stock.
USAR is building a vertically integrated, domestic rare earth magnet production supply chain, and is currently constructing a 310-k square-foot rare earth sintered neodymium magnet manufacturing facility in Stillwater, Oklahoma. USAR also controls mining rights to the Round Top Mountain rare earth and critical minerals deposit in West Texas, which holds significant deposits of heavy rare earths, such as dysprosium and terbium, as well as gallium, beryllium, lithium and other critical tech minerals. USAR's permanent neodymium magnets and rare earth minerals are required for a wide variety of products used in the defense, automotive, aviation, industrial, medical and consumer electronics industries.
The White & Case team was led by Capital Markets partner Joel Rubinstein and associate Russell Deutsch (both in New York).
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