The Metals Royalty Company’s Nasdaq Listing Gets Off To A Strong Start – TMCR Stock Gains 15%

• The company registered 55.1 million shares for sale by existing shareholders.
• The firm did not raise any gross proceeds since no new shares were issued
• Its portfolio is anchored by a 2% gross overriding royalty on the NORI polymetallic nodule deposit operated by TMC.

The Metals Royalty Company Inc. (TMCR) made a strong debut on Wednesday, after its direct listing on Nasdaq.

At the time of writing, TMCR shares traded more than 15% above their opening price of $15. The stock was up 230% over the offer price of $5, according to Stocktwits data.

The company registered 55.1 million shares for sale by existing shareholders. Since it was a direct listing, no new shares were issued, and the company did not raise any gross proceeds.

A direct listing allows existing shareholders of a company to directly sell their shares to the public, without using underwriters. In TMCR’s case, Stifel acted as a financial advisor.

Royalty-Based Business Model

The Metals Royalty Company is a financing platform that acquires and manages royalties and streams across the entire value chain. The company has a royalty-based business model that allows it to benefit from long-term cash flows and rising commodity prices while avoiding many of the operational and environmental risks associated with mining.

Its portfolio is anchored by a 2% gross overriding royalty on the NORI polymetallic nodule deposit, operated by The Metals Company Inc. (TMC). The deposit is located in the Clarion-Clipperton Zone of the Pacific Ocean, between Hawaii and Mexico.

This project is considered one of the largest undeveloped sources of nickel, copper, cobalt, and manganese, considered key materials for energy, defense, and advanced manufacturing.

How Did Retail Traders React?

Retail sentiment for TMCR on Stocktwits was ‘extremely bullish,’ while message volumes were ‘extremely high.’

One user expects the stock to climb to $25.

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