Rare earths co REalloys falls on $50 mln stock sale after US defense contract win

REalloys

06/03/2026 13:05

** Rare earths co REalloys Inc's ALOY.O shares down 12.4% before the bell to $19.01 after $50 mln follow-on priced just days after receiving Pentagon funding

** Ohio-based ALOY early Fri announced ~2.7 mln shares at $18.50, a 14.7% discount to last close

** ALOY expects to use net offering proceeds for working capital and general corp purposes

** Early Mon, co said it was awarded a U.S. Department of Defense contract worth up to $1.7 mln to fund design of a processing facility for metals used to make magnets for weapons and electronics

** ALOY stock closed at $15.98 on Feb 25 after it began trading on the Nasdaq following merger with Blackboxstocks

** Stock fell ~16% on Thurs giving co ~$1.2 bln market cap based on ~57.1 mln shares outstanding, per the offering prospectus

** Clear Street acting as lead bookrunner for stock offering, joined by Needham

** Clear Street, led by former Cboe CEO Edward Tilly, withdrew its IPO filing last month amid market volatility, as several firms either downsized or postponed their listing plans

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))