$500 Million of SPAC Cash Vanishes Under the Sea

Date: September 14, 2021

Source: Bloomberg

Author: Chris Bryant 

As prospective deep-sea mining company, The Metals Company, formerly known as DeepGreen, went public last week after a merger with the SPAC, Sustainable Opportunities Acquisition Corporation, shares sank 11%.

Bloomberg also reported that two unidentified investors failed to provide funds comprising two-thirds of TMC’s $330 million PIPE (private investment in public equity).

“While the investors’ decision to hold back may have nothing to do with environmental worries, the scale of TMC’s cash shortfall suggests it has yet to convince capital markets that its multi-billion dollar valuation is justified, given the risks. And these risks go well beyond bringing rocks to the ocean surface. “

Read the full article here.

Posted on Categories Mining