The proposed business combination will create a publicly listed company that will have an estimated enterprise value of $225m and advance ABM’s position as a provider of critical minerals and domestically sourced Lithium to the global markets
ABM will become a publicly traded company. (Credit: Possessed Photography on Unsplash)
US-based critical minerals explorer and developer American Battery Materials (ABM) has agreed to merge with Seaport Global Acquisition II (SGII), a special-purpose acquisition company.
The proposed business combination will create a publicly listed company that will have an estimated enterprise value of $225m on a pro-forma basis.
Under the terms of the agreement, ABM shareholders will receive equity in SGII, which is valued at $160m.
The Boards of Directors of both parties have unanimously approved the proposed merger.
The deal is expected to be completed in the fourth quarter of this year, subject to customary closing conditions, including regulatory approvals and approval by ABM’s and SGII’s shareholders.
Upon closing, ABM will become a fully-owned subsidiary of SGII, renamed American Battery Materials Holdings, and its shares will be listed on Nasdaq.
ABM co-CEO and chairman David Graber said: “Our merger with SGII is a defining moment for ABM. It is expected to provide us with access to sources of capital needed to advance our lithium activities to critical mass.
“We have found the perfect partners in the Seaport team, and I want to thank our incredible team at ABM, as well as our investors, for bringing this to fruition.”
ABM is an exploration-stage company focused on direct lithium extraction (DLE) and other minerals critical to the global energy transition.
The company owns 102 federal mining claims in Eastern Utah, across 2,040 acres of federal land, and supplies domestically sourced critical minerals to global markets.
ABM intends to use the capital raised from the transaction to invest further in the development of its existing mining assets in the US.
In addition, the company aims to explore ways to further diversify its portfolio of land assets across geographies.
ABM co-chief executive officer Sebastian Lux said: “Demand for lithium is far outpacing supply, with the U.S. producing less than 5% of the world’s lithium.
“Combining with SGII and listing on Nasdaq will allow us to accelerate our lithium and critical minerals extraction projects in Utah and potentially beyond to capitalise on the attractive opportunity as the world increasingly shifts towards electrification.”