REalloys closes $100M private placement to fund rare earth operations

REalloys Inc. closed a $100 million private placement, selling 7,017,540 shares at $14.25 apiece to institutional investors.

The company plans to use net proceeds for working capital and general corporate purposes, it said in a statement. Clear Street LLC acted as sole placement agent for the offering, with Haynes and Boone serving as legal counsel to REalloys and Paul Hastings advising Clear Street.

The offering priced at $14.25 per share, a discount to the stock's $14.82 close on June 24 when the deal was first announced. The initial news triggered a 14.5 percent decline, according to StockTitan data, as investors weighed dilution from the 7 million new shares. The stock had gained 4 percent on the announcement day before reversing.

The capital injection bolsters REalloys' balance sheet as it advances its mine-to-magnet rare earth supply chain, including its Hoidas Lake asset in Saskatchewan and downstream manufacturing in Euclid, Ohio. The company reported just $800,000 in revenue for fiscal 2025 against a net loss of $75.6 million, underscoring the need for external funding to support its capital-intensive buildout.

The offering represents the company's second equity raise this year. In March, REalloys sold 2.7 million shares at $18.50 each in a public offering that generated roughly $50 million in gross proceeds, according to SEC filings.

REalloys is building a fully integrated North American rare earth supply chain spanning upstream mining, midstream processing and downstream magnet manufacturing. Its Euclid, Ohio, facility serves federal procurement agencies supporting the Defense Department, Energy Department and NASA. The company's Hoidas Lake project in Saskatchewan, together with a partnership with SRC, is designed to secure exclusive access to heavy rare earth separation and refining output for its downstream operations.

Short interest stood at 5.11 percent of float as of late May, according to exchange data, suggesting limited bearish positioning ahead of the placement.

The $100 million raise gives REalloys additional runway to fund its operations, though the dilutive structure and the company's history of losses mean investors will watch for progress toward commercial production. The next catalyst is the effectiveness of the resale registration statement, which the company has agreed to file with the SEC.

This article is for informational purposes only and does not constitute investment advice.