Sio Silica, a Canada-based company that seeks to become a global leader in the production and supply of environmentally and ethically produced high-purity quartz silica, and Pyrophyte Acquisition announced today that they have entered into a merger agreement at an implied enterprise value of $708 million and equity value of $758 million.
The deal includes approximately $150 million of gross capital including equity, debt, royalties and Sio’s cash on hand and an additional $10 million expected flow-through equity from a variety of institutional and individual accredited investors.
If approved, the proceeds are expected to fully fund the construction of the first phase of Sio’s extraction and processing facility in Winnipeg, Manitoba. Upon closing Sio Silica shares and warrants are expected to list on the New York Stock Exchange under the tickers SIOS and SIOS WS.
BMO Nesbitt Burns is financial advisor to Sio. UBS Securities is capital markets advisor to Pyrophyte. Integral Wealth Securities acted as Sio’s exclusive financial advisor in procuring and negotiating royalty financing, and, as an advisor to Sio on the business combination agreement. BMO Capital Markets, UBS Securities and Integral Wealth Securities are acting as joint placement agents on the PIPE.
DLA Piper (Canada) and DLA Piper (US) are legal advisors to Sio. White & Case is legal advisor to Pyrophyte. Skadden, Arps, Slate, Meagher & Flom is legal advisor to BMO Capital Markets and UBS Securities. Read more.
