Critical mineral refining company Nth Cycle said on Wednesday it would go public through a merger with special purpose acquisition company (SPAC) Kensington Capital Acquisition.
- The merger will value Nth Cycle at an enterprise value of $585 million.
- The combined company will be named Nth Cycle Holdings Inc. and is expected to trade on the New York Stock Exchange under the ticker “NTH”.
- SPACs allow companies to go public without raising fresh capital from investors.
- The deal is expected to provide up to $230 million from Kensington’s trust account and up to $100 million from a common stock PIPE (private investment in public equity), including $40 million already committed.
- Nth Cycle plans to use the funds to expand its refining capacity and help reduce Western reliance on China for processed critical minerals.
