STILLWATER, Okla., (The Oklahoma Post) –
The USA Rare Earth merger with a failing public fund signals 1. Desperation. 2. A private company just walked with 150 million in taxpayer funds.
“Global law firm White & Case LLP has advised Inflection Point Acquisition Corp. II (Nasdaq: IPXX), a special purpose acquisition company, business combination agreement with USA Rare Earth, LLC, which will result in USA Rare Earth becoming a publicly traded company. The transaction also includes an initial PIPE investment of approximately US$35 million. The proposed business combination is expected to be completed in early 2025, subject to closing conditions. The closing conditions may not be met.”
Sounds like a classic case of a company using government funding to prop itself up before cashing out through a risky public merger. If the public company they’re merging with already has a strong sell rating, that’s a major red flag—it suggests financial instability, poor management, or a failing business model.
If the local company wasn’t profitable or self-sustaining before, dumping it into a struggling private entity likely won’t change that. Instead, it could just be a way for insiders to cash out before the whole thing collapses, leaving investors (and taxpayers) holding the bag. In the end….the market will lead to cheaper resource out of the country……how the company currently receives its resource. Outsourced.
Inflection Point Acquisition, USA Rare Earth Receive Additional $15.3 Million PIPE Financing
(Writing by Lee Brooks; Editing by Robbie Robertson)
2025 -The Oklahoma Post – TheOKPost.com is dedicated to delivering relevant news and information to Oklahomans, sharing their stories, pictures, and experiences. The content on this website includes contributions from various individuals and links to external public and privately owned sources. The views and opinions expressed in user-generated content are solely those of the respective authors and do not necessarily reflect The Oklahoma Post. The Oklahoma Post does not independently verify the accuracy of third-party contributions and rely upon contributors to fact-check their work. By sharing links and allowing open contributions, TheOKPost.com exercises the right to free speech and providing a platform for diverse perspectives.
