European Lithium AT (Investments) Limited and Sizzle Acquisition have entered into a definitive merger agreement that would result in the formation of Critical Metals, which is expected to be a leading lithium mining company. The deal values the combined entity at an implied pro forma enterprise value of approximately $838 million, and at an implied pro forma market capitalization of approximately $972 million. The implied pre-money equity value is $750 million.
If approved, upon closing Critical Metals intends to list on the Nasdaq under the symbol CRML, which is expected to occur in the first half of 2023.
The transaction is expected to provide approximately $159 million before expenses and the impact of any redemptions.
European Lithium will roll 100% of its existing equity into the combined entity, retaining approximately 80% of the combined company’s pro forma equity before redemptions or any additional capital raise.
Sizzle raised $155 million in a November 2021 IPO with stated plans at the time to focus on target businesses in the restaurant, hospitality, food and beverage, retail, consumer, food and food related technology and real estate industries.
Upon closing, Critical Metals will own European Lithium’s Wolfsberg Lithium Project as well as a 20% interest in additional Austrian projects currently held by European Lithium. European Lithium will be the largest shareholder of Critical Metals and is expected to continue to trade on the Australian Securities Exchange. Read more.
