USA Rare Earth Announces $75 Million PIPE Investment

Core Viewpoint - USA Rare Earth, Inc. has entered into a securities purchase agreement to raise $75 million through a private investment in public equity (PIPE) to fund its magnet manufacturing facility and operational expenses [1][2]. Company Overview - USA Rare Earth is constructing a 310,000 square foot rare earth sintered neo magnet manufacturing facility in Stillwater, Oklahoma [7]. - The company controls mining rights to the Round Top Mountain rare earth and critical minerals deposit in West Texas, which contains significant deposits of heavy rare earths and other critical tech minerals [7]. - The company's products are essential for various industries, including defense, automotive, aviation, industrial, medical, and consumer electronics [7]. Financial Details - The PIPE will involve the issuance of approximately 8.55 million shares of common stock and pre-funded warrants for about 2.16 million shares, with a total purchase price of $75 million [2]. - The PIPE Warrants will allow the purchase of shares equal to 100% of the aggregate shares at a strike price of $7.00 per share, expiring six years from the issue date [2]. Investor Engagement - The CEO expressed satisfaction with the investor reception during the PIPE process, highlighting the importance of this funding for the first phase of the rare earth magnet facility [2]. - A special meeting of stockholders will be held to approve the issuance of the Warrant Shares, with majority support already secured [3]. Advisory and Legal Support - Cantor Fitzgerald & Co. acted as the lead placement agent for the private placement, with Cohen Capital Markets also involved [4]. - Legal counsel for USA Rare Earth was provided by White & Case LLP, while Reed Smith LLP served as legal counsel for the placement agents [4].