SPACInsider Logo
GX Acquisition Corp. II (GXII) Shareholders Approve NioCorp Deal
by Nicholas Alan Clayton on 2023-03-16 at 8:58am

GX Acquisition Corp. II (OTC:GXII) announced this morning that its shareholders have approved its combination with rare earth mineral miner NioCorp (TSX:NB) and the parties expect to close the transaction on March 17.

The SPAC showed in an earlier 8-K filing that it saw about 95% of shares redeemed at the March 15 shareholder vote, reducing GX II’s trust to about $15.3 million. But, NioCorp expects to have access to up to $71.9 million in total proceeds through a pair of new Yorkville financing facilities.

These are to come in the form of about $15.4 million in convertible notes from Yorkville and a standby equity facility worth up to $61.6 million over the next three years. Despite the deal’s $20.3 million in transaction costs, this is enough to cover its $50 million minimum cash condition.

NioCorp CEO and Executive Chairman Mark Smith noted some disappointment in its final cash haul in the parties’ press release, noting “all of us would rather have seen higher proceeds from the GXII transaction”. But, he anticipated that the Yorkville facilities will provide enough capital access for it to advance its Elk Creek mining project.

The combined company is expected to begin trading on the Nasdaq under the symbol “NB” on March 21. The parties announced the $313.5 million combination in September 2022.

Centennial, Colorado-based NioCorp is developing a mine in Elk Creek, Nebraska that holds the potential to exploit several critical minerals including the highest-grade Niobium found in North America.

The company noted in its investor presentation that it expects to need $25 million for preliminary steps at the mine site, $150 million to get through initial construction and $285 million to fully execute its development.

Smith said in the press release that it is “on the US Government’s radar screen now” and hopes this transaction will help advance efforts to firm up a non-binding letter of interest for up to $800 million in support from the US Export-Import Bank.


ADVISORS

  • SWI Partners Limited is serving as an advisor to NioCorp.
  • Jones Day is serving as legal counsel to NioCorp in the U.S.
  • Blake, Cassels and Graydon LLP is serving as legal counsel to NioCorp in Canada.
  • NioCorp has engaged GenCap Mining Advisory Ltd. as its financial advisor.
  • Cantor Fitzgerald & Co. is serving as lead capital markets advisor to GX Acquisition Corp. II.
  • BTIG, LLC is serving as a capital markets advisor to GX Acquisition Corp. II.
  • Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel to GXII in the U.S.
  • Stikeman Elliott LLP is serving as legal counsel to GXII in Canada.
  • DLA Piper LLP (US) is serving as legal counsel to Cantor Fitzgerald & Co.

 

Recent Posts
by Marlena Haddad on 2023-03-27 at 5:44pm

Latest Non-Redemption Agreements: two two (TWOA) Adds Non-Redemption Agreement In connection with the previously announced shareholder meeting of two (NYSE:TWOA) to extend the company’s completion deadline from April 1, 2023 to January 1, 2024, the company and two sponsor, have entered into non-redemption agreements with several unaffiliated third parties. The third parties have agreed not to...

by Marlena Haddad on 2023-03-27 at 5:34pm

Latest SPAC Liquidations: Khosla Ventures Acquisition Co. III Khosla Ventures Acquisition Co. III (KVSC) to Liquidate  Khosla Ventures Acquisition Co. III (NASDAQ:KVSC) did not consummate, or execute a letter of intent before March 26, and therefore shall cease all operations except for the purpose of winding up. It intends to liquidate and redeem all of its...

by Marlena Haddad on 2023-03-27 at 11:49am

Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.  Latest SPAC News:  Faze Clan considers going private, Richard Branson sits out Virgin Orbit’s flameout, and Tempo Automation to acquire Optimum Design Associates Faze Clan considers going private amid financial concerns Esports giant Faze Clan (NASDAQ:FAZE) is...

by Nicholas Alan Clayton on 2023-03-27 at 11:23am

Aquaron Acquisition Corp. (NASDAQ:AQU) has entered into a definitive agreement to combine with hydrogen energy company Bestpath at an initial equity value of $1.2 billion. Shanghai-based Bestpath has developed technology for hydrogen fuel cell-powered heavy trucks and the refilling stations that would supply them. The combined company is expected to trade on the Nasdaq once...

by Nicholas Alan Clayton on 2023-03-27 at 7:27am

Manufacturing technology company Berkshire Grey (NASDAQ:BGRY), which closed a combination with Revolution Acceleration in July 2021, announced over the weekend that it is being acquired by SoftBank in a take-private transaction priced at $1.40 per share. The price marks a 24% premium over Berkshire Grey’s closing price on March 24 and a 7.6% boost over...

Privacy Policy|Terms Of Use
Copyright © 2023 SPACInsider, Inc. All Rights Reserved