Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, July 24, 2020

Article Excerpt

MP MATERIALS CORP. is the owner and operator of the Mountain Pass mine, the only significant rare earth commercial mining and processing site in North America. Rare-earth elements are used in a variety of modern devices and applications: catalytic converters and petroleum refining; magnets in small and large motors; glass additives and glass polishing compounds; rechargeable batteries; television and computer screens; lighting; X-ray machines; and lasers. On July 15, 2020. MP Materials announced that it has agreed to merge with Fortress Value Acquisition Corp. (symbol FVAC on New York). That special purpose acquisition company (SPAC) raised $300 million in late April 2020. Once the transaction is completed, the merged businesses will operate as MP Materials with a market value of around of $1.5 billion. It will hold more than $500 million in cash to fund its growth. That will include a $200 million investment in the new MP Materials by a group of investors including Slate Path Capital and the Omega Family Office. Meanwhile,…