TMC the metals company (TMC) Jumps 6% as Shareholder Partnership with Govt Spills Over

We recently published 10 Stocks Shining Bright Amid Wall Street’s Dull Spell. TMC the metals company Inc. (NASDAQ:TMC) is one of the top performers on Tuesday.

TMC the metals company rebounded by 6.17 percent on Tuesday to finish at $6.88 apiece as investor sentiment was fueled by news that one of its shareholders had secured the backing of the US government through a strategic billion-dollar investment.

On Monday, Korea Zinc—which holds a 5 percent stake in TMC the metals company Inc. (NASDAQ:TMC)—announced that it secured the backing of the US government following the acquisition of a 40.1 percent stake in its $7.4 billion mineral smelter in Tennessee, as well as a 10 percent share in its total outstanding shares.

The government support spilled over to TMC the metals company Inc. (NASDAQ:TMC), which is not at all a party to the partnership, but which investors believed would indirectly benefit from an expected stronger Korea Zinc portfolio companies.

In June this year, Korea Zinc acquired 19.6 million shares in TMC the metals company Inc. (NASDAQ:TMC) at a price of $4.34 apiece, for a total of $85.2 million, making the Korean firm one of its largest shareholders to date.

The investment included a three-year warrant to purchase 6.9 million common shares with an exercise price of $7 each, and a participation right to subscribe to its future offerings to maintain its ownership of common shares.

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Disclosure: None. This article is originally published at Insider Monkey.