American Battery Materials Inc. (OTC Pink: BLTH), a Greenwich-headquartered minerals exploration and development company focused on environmentally friendly direct lithium extraction, has entered into a definitive merger agreement for a business combination with Seaport Global Acquisition II Corp. (NASDAQ: SGII), a publicly listed special purpose acquisition company (SPAC) based in New York City.
According to the companies, the merger will result in ABM becoming a wholly owned subsidiary of SGII. The holders of outstanding ABM shares will receive equity in SGII valued at $160 million, and the combined company is expected to be renamed American Battery Materials Holdings with its common stock and warrants to be listed on the Nasdaq Global Market.
ABM owns 102 federal mining claims in Eastern Utah across 2,040 acres of federal land including seven existing wells. Capital raised from the transaction is expected to be used to invest further in the development of the company”™s existing U.S.-based mining assets, in addition to exploring ways to broaden and further diversify the company”™s portfolio of land assets across geographies.
“Demand for lithium is far outpacing supply, with the U.S. producing less than 5% of the world”™s lithium,” said Sebastian Lux, co-CEO Officer of ABM. “Combining with SGII and listing on Nasdaq will allow us to accelerate our lithium and critical minerals extraction projects in Utah and potentially beyond to capitalize on the attractive opportunity as the world increasingly shifts towards electrification.”
