Reach Resources Limited (ASX: RR1 & RR1OA) is an ASX-listed entity that holds an approximately 4.9% stake in REEcycle Holdings Inc. The company today advised that it has noted the announcement regarding a definitive business combination agreement (BCA) between Hall Chadwick Acquisition Corp (Nasdaq: HCACU) and REEcycle Holdings Inc. This agreement, publicly released by HCACU and REEcycle, is aimed at facilitating REEcycle’s future listing on the Nasdaq Stock Market, providing access to U.S. capital markets and an enhanced profile with institutional and strategic investors.
The announcement outlines that the transaction values REEcycle at a total equity value of US$400 million. This valuation includes US$50 million contingent upon REEcycle achieving an annualised run rate of 50 metric tonnes per annum of mixed rare earth oxide. Upon the closing of the BCA, the combined company is expected to be well-capitalised, projecting a minimum of US$40 million in unrestricted cash. This capital is designated to drive the development and commercialisation of REEcycle’s rare earth recycling operations.
Both the boards of directors of Hall Chadwick Acquisition Corp and REEcycle Holdings Inc have unanimously approved the BCA. Reach Resources, however, was not a party to, nor involved in the negotiation of, the BCA. Consequently, Reach has limited information pertaining to the agreement and has not independently verified the details within the HCAC announcement. The completion of the BCA is subject to standard closing conditions, including Hall Chadwick shareholder approval and the effectiveness of a registration statement on Form S-4 with the U.S. Securities Exchange Commission. Reach Resources Limited has affirmed its commitment to keep the market informed of any material developments in line with its continuous disclosure obligations.
