Global law firm White & Case LLP has provided legal counsel to USA Rare Earth, Inc. in a recent capital-raising effort. The company successfully secured US$75 million through a private investment in public equity (PIPE) deal with a new institutional investor.
According to the terms of the agreement, USA Rare Earth issued approximately 8.55 million shares of common stock, pre-funded warrants for about 2.16 million shares, and warrants for an additional 10.71 million shares, all totaling an aggregate purchase price of US$75 million.
USA Rare Earth is working on establishing a vertically integrated rare earth magnet production supply chain within the United States. Part of this initiative includes the construction of a 310,000 square-foot facility in Stillwater, Oklahoma dedicated to manufacturing rare earth sintered neodymium magnets. Additionally, the company holds mining rights at Round Top Mountain in West Texas, known for its deposits of heavy rare earths like dysprosium and terbium as well as other critical minerals such as gallium and lithium.
The company’s products are vital across various industries including defense, automotive, aviation, industrial sectors, medical fields, and consumer electronics.
The legal team from White & Case that facilitated this transaction was led by Capital Markets partner Joel Rubinstein and associate Russell Deutsch based in New York.
