USA Rare Earth Secures $75 Million Equity Investment

An update from USA Rare Earth ( (USAR) ) is now available.

On April 29, 2025, USA Rare Earth, Inc. entered into a securities purchase agreement for a $75 million private placement of equity capital with a single institutional investor. The proceeds will fund capital expenditures for the company’s magnet manufacturing facility in Stillwater, Oklahoma, and support working capital and operating expenses. This investment marks a significant step in USA Rare Earth’s mission to establish one of the largest domestic sintered rare earth magnet facilities, crucial for sectors like defense and technology. The agreement includes issuing common stock, pre-funded warrants, and warrants, with stockholder support agreements in place to approve the issuance of additional shares. The private placement is exempt from registration under the Securities Act, and the company plans to file a registration statement for resale of the shares.

More about USA Rare Earth

USA Rare Earth, Inc. is focused on building a vertically integrated domestic rare earth magnet production supply chain. The company is constructing a 310,000 square foot rare earth sintered neo magnet manufacturing facility in Stillwater, Oklahoma, and controls mining rights to the Round Top Mountain rare earth and critical minerals deposit in West Texas. Their products are essential for industries such as defense, automotive, aviation, industrial, medical, and consumer electronics.

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