Hall Chadwick Acquisition Corp. ("HCAC"), a Nasdaq-listed special purpose acquisition company, today announced that it has entered into a definitive business combination agreement (the "BCA") with REEcycle Holdings, Inc. ("REEcycle"), a pioneering U.S.-based rare earth element recycling company. Upon closing of the BCA (the "Closing"), the combined company to be named REEcycle Inc., is expected to be listed on Nasdaq and would currently be the only publicly traded pure-play rare earth recycling platform in the United States.
The transaction contemplated by the BCA (the "Transaction") represents a direct response to one of America's most urgent national security and industrial imperatives: the establishment of a domestic, China-independent supply chain for rare earth elements ("REEs") — materials that are indispensable to electric vehicles, advanced defense systems, consumer electronics, and next-generation clean energy infrastructure.
TRANSACTION HIGHLIGHTS
- The Transaction values REEcycle at a total equity value of US$400 million, of which US$50 million is contingent upon achieving an annualised run rate of 50 metric tonnes per annum of mixed rare earth oxide
- The combined company is expected to be well-capitalised at the Closing, with a minimum of US$40 million in unrestricted cash available to drive the development and commercialisation of REEcycle's rare earth recycling operations
- Upon the Closing, REEcycle is expected to be listed on the Nasdaq Stock Market, providing access to U.S. capital markets and enhanced profile with institutional and strategic investors
- The BCA and the Transaction have been unanimously approved by the boards of directors of both HCAC and REEcycle
- HCAC currently holds approximately US$207 million in trust, providing a substantial capital base from which to fund the Closing and support the combined company's growth strategy