American Rare Earths has declined a $400 million acquisition offer for its subsidiary, Wyoming Rare (USA) Inc, from Nasdaq listed SPAC Papaya Growth Opportunity.
The board rejected the proposal to focus on maximizing shareholder returns and exploring strategic alternatives, especially after reaching upcoming operational milestones, TipRanks reports.
The SPAC raised $250 million in a January 2022 IPO to search for a target business operating in the software, internet, media, fintech, healthcare IT or consumer industry sectors. However, Papaya Growth disclosed in January that it faces delisting from the Nasdaq for falling below the exchange’s $50 million minimum market cap requirement. The SPAC has until June 7 to regain compliance. Read more.
