Inflection Point Acquisition Corp. II, USA Rare Earth announce upsized PIPE

USA Rare Earth and Inflection Point Acquisition Corp. II (IPXX) announced an additional $15.25M of PIPE funding received from affiliates of IPXX and other related investors, including Chairman Michael Blitzer, in connection with the proposed business combination. This brings the total investment of IPXX’s affliates and other related pre-funded PIPE investors to approximately $30M. This additional investment represents a substantial increase over the remaining amount Inflection Point Fund was required to fund in connection with the transactions contemplated by the Business Combination Agreement. The new investments increase the aggregate gross proceeds to the combined company from the PIPE transactions from $25.5M to $40.75M. The new investments bring the expected gross proceeds of the business combination to approximately $65M, consisting of approximately $24 million from the IPXX trust account and greater than $40M of PIPE capital that has been prefunded to date. As previously disclosed, USARE expects to use the net proceeds from the Proposed Business Combination for general corporate purposes, including progressing the development of its Stillwater magnet facility.