DeepGreen Metals Inc., a developer of lower-impact battery metals from unattached seafloor polymetallic nodules, March 4 entered into a definitive business combination agreement with Sustainable Opportunities Acquisition Corporation, a special purpose acquisition company, as it was informed by DeepGreen.
Sustainable Opportunities Acquisition Corporation, which currently holds over US$300 million in trust, will combine with DeepGreen Metals Inc. Upon closing, DeepGreen will be renamed to operate as The Metals Company and is expected to begin trading under the ticker symbol TMC.
The transaction reflects a pro forma equity value for TMC of approximately US$2.9 billion and enterprise value of US$2.4 billion.
The transaction includes an upsized US$330 million fully committed common stock Private Investment in Public Equity at US$10.00 per share, anchored by an international consortium of strategic and institutional investors, including Allseas, adding to the list of existing strategic investors such as Maersk Supply Service and Glencore.
The transaction, which has been unanimously approved by the Boards of Directors of both DeepGreen and SOAC, is expected to be completed in the second quarter of 2021 and is subject to the approval of shareholders and other customary closing conditions, including a registration statement being declared effective by the SEC.
Citi, Kirkland & Ellis LLP and Stikeman Elliott LLP are serving as advisors to SOAC. Nomura Greentech and Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, P.C. and Fasken Martineau DuMoulin LLP are serving as advisors to DeepGreen.
DeepGreen Metals Inc. is a Canadian developer of lower-impact battery metals from seafloor polymetallic nodules. The company through its subsidiaries holds exploration and commercial rights to three polymetallic nodule contract areas in the Clarion Clipperton Zone of the Pacific Ocean sponsored by the governments of Nauru, Kiribati and the Kingdom of Tonga, which are regulated by the International Seabed Authority.
Sustainable Opportunities Acquisition Corporation is a SPAC formed for the purpose of entering into a business combination with one or more businesses.