REEcycle Holdings and Hall Chadwick Acquisition Corp. secured US Securities and Exchange Commission effectiveness for their proposed business combination. The transaction values REEcycle, a rare-earth recycling technology company, at approximately US$350 million in equity value. The deal terms also include an additional US$50 million earnout.
Terms of the transaction
Existing REEcycle shareholders plan to roll over 100% of their equity into the combined business. The transaction will provide REEcycle with direct access to US public capital markets. Following completion, the combined company plans to list on Nasdaq under the ticker symbol REC.
Technology and government backing
REEcycle extracts rare-earth elements from end-of-life permanent magnets at a demonstration site in Duncan, Oklahoma. The company previously received a US$5.1 million award from the US Department of War Defense Production Act Title III program. Its process separates valuable elements, including neodymium, praseodymium, dysprosium, and terbium.
Commercial processing plans
REEcycle plans to construct an initial commercial-scale processing facility. The proposed facility has an anticipated annual processing capacity of approximately 160 metric tons. Development remains dependent on future financing, engineering, and construction milestones.
Hall Chadwick Acquisition Corp. plans to hold a shareholder meeting on December 10, 2026. Both parties expect the transaction to close before the end of 2026. Final completion requires shareholder approval and the satisfaction of customary closing conditions.