USA Rare Earth Files Pro Forma Financials for SVRE Merger, Details $1.6B Govt. Funding

USA Rare Earth (USAR) has filed updated pro forma condensed combined financial statements related to its pending merger with SVRE Holdings Ltd. (SVRE). The filing incorporates the financial impact of the merger, a recently finalized $1.6 billion funding package from the U.S. government, and other significant transactions, providing a clearer picture of the combined company's future financial structure and the dilutive impact on shareholders.

Key Details

• Merger Consideration: The acquisition of SVRE, originally agreed upon on April 19, 2026, will consist of 126,849,307 USAR common shares and $300 million in cash.
• U.S. Government Funding: USAR entered into definitive agreements with the U.S. Department of Commerce on June 3, 2026, securing up to $277 million in direct funding and a $1.3 billion loan guarantee under the CHIPS Act.
• Equity Issuance & Dilution: In connection with the government funding, USAR issued 16.1 million shares and a warrant for an additional 17.6 million shares to the Department of Commerce. The filing estimates that shares issued in the merger will represent 30.9% of the company's total fully-diluted shares upon completion of all pending transactions.