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 Kristi Marvin on 2023-03-18 at 12:34pm

Terms Tracker for the Week Ending March 17, 2023 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. Despite this week’s headlines about bank failures, EF Hutton managed to file both a new S-1 registration statement and price an IPO.  They should have...

by Nicholas Alan Clayton on 2023-03-17 at 5:53pm

Latest SPAC Liquidations: Northern Genesis III, MSD, and Tech and Energy Transition Corp. Northern Genesis Acquisition Corp. III (NGC) to Liquidate on March 24 Northern Genesis III (NYSE:NGC) announced that it will redeem all outstanding shares effective as of the close of business on March 27. Shares will cease trading on March 24 and the per-share...

by Marlena Haddad on 2023-03-17 at 5:52pm

Tech and Energy Transition Corp. (NASDAQ: TETC) announced this afternoon that its shareholders have voted against a proposal to extend the SPAC’s timeline to complete a business combination. Holders of 38,069,946 shares of TETC’s common stock, comprised of 28,495,396 shares of Class A common stock, and 9,575,000 shares of Class B common stock, were present at...

by Marlena Haddad on 2023-03-17 at 12:02pm

Direct Selling Acquisition Corp. (NYSE: DSAQ) announced this morning that it intends to adjourn its extension vote, originally scheduled to be held on March 22, and will reconvene on March 24 at 11:00 a.m. The SPAC has also extended the redemption deadline to March 22 at 5:00 p.m. It is currently facing a completion deadline of March...

by Marlena Haddad on 2023-03-17 at 11:35am

Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.  Latest SPAC News:  Saudi Arabia explores setting up framework for SPAC listings, and Boxed considers filing for bankruptcy  Saudi Arabia Explores Setting Up Framework for SPAC Listings Saudi Arabia’s market regulator is looking into setting up a...

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