USA Rare Earth agreed to raise about $1.5 billion in a private placement, selling 69.8 million shares at $21.50 each -- by far its largest capital raise to date, funding the mine-to-magnet buildout.
What it means for a shareholder
69.8m new shares at US$21.50 to raise about US$1.50bn. That's 32% dilution: every existing holder's slice gets 32% smaller. If you held US$1,000 of shares (47 at the issue price), your slice goes from 0.0000314% to 0.0000213% of the company. To keep it you'd need 22 more shares - about US$473 at the issue price.
beforeafteryour share of the company
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