USA Rare Earth
New York City, New York — May 15, 2020— Four Points Capital Partners, is pleased to announce that it has completed a $3.83 million convertible preferred financing for USA Rare Earth LLC, acting on their behalf as placement agent. USA Rare Earth is the funding and development partner of the Round Top-Heavy Rare Earth and Critical Minerals Project in West Texas. The financing follows a $5 million seed round completed by USA Rare Earth last summer for which Four Points also acted as placement agent.
The Four Points team was led by banking representatives Josh Hawes, Frank Gregory, and Ed McCarthy. The team brings over 50 years of banking and placement experience across a broad range of industries with backgrounds in finance, and management consulting for domestic and global enterprises. The combined experience of the team allows for adept capital raising, structuring, and execution.
CEO of Four Points Capital Partners, Michael C. Martino, said, "That Josh, Frank, and Ed were able to raise and close a round of financing in the middle of the COVID pandemic was not only impressive but, demonstrated outstanding commitment and dedication to their clients. They took the time to understand the client’s needs and analyze the transaction to maximize success. This landmark initiative is a complex mining project that can have a significant, positive impact on the country if it comes to fruition.”
Presently the United States imports more than 75% of its rare earth needs. If successful and brought to commercial operation, Round Top is expected to reduce that reliance on imports. Rare earth metals are utilized in a wide variety of defense, aviation, industrial, and everyday consumer electronics products such as cell phones, computers, rechargeable batteries as well as many other areas such as fluorescent lighting. China is currently by far the world’s dominant producer.
"I have been working with Josh Hawes, Frank Gregory, and the rest of the Four Points team for over a year and have been impressed with their dedication to the project and attention to detail,” said Pini Althaus, CEO of USA Rare Earth. “This is not an easy environment in which to raise capital, but they met our needs and have been valuable business partners in advancing this strategically important project."
Four Points Capital Partners (“FPCM”) is a boutique independent broker-dealer providing strategic and innovative solutions to its clients. FPCM serves its clients through its investment banking, sports advisory, wealth management, institutional trading, and retail divisions.