Came across this in the Daily Chase from BNN:
"Tactical Resources Corp. plans to list on the Nasdaq stock market through a merger with a shell company. After the transaction, the combined firm will have an enterprise value of US$589 million. Founded in 2018, Tactical Resources explores and develops rare earth elements — a group of 17 metals essential for defence technology, electric vehicles and semiconductors. The company will use proceeds from the deal to finance construction of a processing facility at the Peak Project, a rare earth minerals mine near El Paso, Texas."
Any thoughts on the company from an investment standpoint would be appreciated.
Thank you!!
This is a special purpose acquisition (SPAC) transaction, allowing Tactical to go public faster. Typically, SPACs do not work out well. We do not have a lot of current details. RARE has been a tiny unprofitable company to date. It released some good extraction numbers in 2022, and its project is considered OK. That being said, there is high risk here and a LOT of capital will still be needed. The sector has had its ups and down and is currently experiencing negative investor sentiment. Certainly a 'bigger' company will attract more interest, and allow better access to capital, but it all comes down to the robustness and economics of its Peak Project. Today, that is a big uncertainty and we would consider this too risky right now for serious consideration.