Why TMC The Metals Company Stock Is Skyrocketing Today
The company has taken steps to reduce the number of shares that will be issued from the warrants.
The news follows a big investment deal that TMC announced at the beginning of this week.
10 stocks we like better than TMC The Metals Company ›
TMC The Metals Company (NASDAQ: TMC) stock is roaring higher Wednesday. The company's share price was up 23.7% as of 3:30 p.m. ET. Meanwhile, the S&P 500 (SNPINDEX: ^GSPC) was roughly flat on the day's trading.
TMC's valuation is soaring after the mining specialist published an update that is easing investor concerns about stock dilution. The news has helped continue a big rally for the stock that was kicked off earlier this week by the announcement that TMC had signed a big investment deal with a South Korean company.
After the market closed yesterday, TMC submitted a filing to the Securities and Exchange Commission (SEC) stating that it had amended the terms for Class B stock warrants to purchase 9.95 million shares of its common stock at a price of $2 per share. Through the filing, the company revealed that it had waived a requirement that would prevent the holders of the warrants from exercising them through a cashless exercise.
In other words, the holders of the warrants do not need to pay the $2 per share exercising price and can instead pay the exercise price with common stock value in exchange for receiving less common stock. The company says it believes that its new approach to the warrants is in the best interest of shareholders because it could reduce the amount of stock issued through the warrants, and investors appear to be excited about the new arrangement.
On Monday, TMC announced that Korea Zinc would be making an $85.2 million investment in the company in exchange for 19.6 million shares of common stock. Per the terms, Korea Zinc will also receive warrants to purchase 6.9 million shares of common stock at an exercise price of $7 per share. The deal will provide TMC with a substantial new capital injection and also signals a high level of confidence in its mining operations and forward stock performance outlook. As evidenced by the recent amending of the previously issued Class B warrants, the deal has also given TMC increased financial flexibility and confidence.
Before you buy stock in TMC The Metals Company, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and TMC The Metals Company wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!*
Now, it's worth noting Stock Advisor's total average return is 992% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join .
See the 10 stocks »
*Stock Advisor returns as of June 9, 2025
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why TMC The Metals Company Stock Is Skyrocketing Today was originally published by The Motley Fool
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
a minute ago
- Business Insider
A CPA couple who invest in real estate on the side shares the investment mistake that cost them about six-figures worth of 401(k) money
CPAs Amanda Han and Matthew MacFarland worked alongside real estate investors for years, helping them save on taxes. However, working with investors and actually investing are very different, as the accountants learned the hard way. The California-based couple has built an impressive real estate portfolio that includes rentals and syndication deals outside their CPA day jobs. But, early in their real estate investment careers, a mistake cost them about $100,000 worth of retirement savings. "I think each of us lost like $50,000 in our 401(k)," MacFarland told Business Insider of the failed deal they invested in back in 2008. "We were very prevalent in the industry of people talking about self-directed IRAs and using your retirement accounts, and so we happened to use our retirement accounts to invest in a syndicated real estate deal," he explained. "In retrospect, the timing was horrible." It wasn't just bad timing. Han and MacFarland forewent a critical step: due diligence. Real-estate syndication is a way for a group of investors to pool their capital together and purchase a single property managed by a "syndicator." Once the investor contributes capital, their role in the deal becomes completely passive, as the syndicator is responsible for finding the deal, executing the transaction, and, ultimately, delivering returns to the investors. The hands-off nature of these deals is great for investors with more money than time, but you're putting a lot of trust in the syndicator and depending on their competence. You're investing in both the deal and the person running it. And while a good syndicator can turn a mediocre property into a success, a bad one can ruin a great opportunity — or, drain your retirement savings, in the case of Han and MacFarland. They met the syndicator through a colleague and, "we trusted that he knew what he was doing," said MacFarland. Looking back, they would have spent a lot more time on the vetting process. An easy first step when vetting syndicators is to type their first and last names into Google along with keywords like "fraud," "complaints," or "SEC." You can also talk to investors who have worked with them in the past and ask about their experience. "You might find a lot of things that you didn't know about someone," said Han. Using syndication deals to build wealth passively Han and MacFarland are invested in multiple syndications, which allow them to own a portion of larger properties they wouldn't be able to purchase individually. Between their 16 passive syndication deals, they own condos, apartments, and mobile home parks. Another perk is the distributions, which are payments that investors receive from the income generated by the property. Investors typically get paid quarterly or monthly during the life of the deal, but it all depends on how the deal is structured. "It kind of runs the gamut. You see a lot of different things," explained MacFarland. "But, a typical cash flow deal, you'd expect to start getting quarterly distributions probably after the first year. But some are set up in such a way that they're value-adds, and that it's going to take two to three years to stabilize the property." Having experience with both active and passive real estate investments, "I don't think there's one that's necessarily better than the other," said Han. "It just comes down to your resources: Do you have more time, or do you have more money?" It also depends on your strengths and weaknesses. "We have clients who do their own rentals, and they do super well. They generate much higher returns than any syndication could provide," she said. At Han and MacFarland's current phase in life, passive real estate investments make more sense. "When we first started out, we were cash poor and really looked for properties where we could add forced appreciation by doing things to rehab and improve them," said Han. "But now, we're at a phase where we have young kids and it's just more time-consuming." If the right deal on a rental property came around, they'd still jump on it, but "more of our resources are now for passive investments in larger deals," she added. "Because now, for us, the limitation is not as much funding. It's more so just the time." Plus, they recognize that their main strength is still tax strategy. "We're really good at being tax strategists — that's our specialty — and we know there are people who do real estate investing that are a lot better at it than we are, so it makes sense to leverage their expertise," said MacFarland, adding: "We do our due diligence now."
WIRED
a minute ago
- WIRED
It's the Economy, Donald
Aug 20, 2025 5:30 AM As US labor and inflation data seemingly worsen, the White House refrain is 'no panicans'—in other words, no room for panic. That isn't keeping everyone in Trumpworld from getting the jitters. Photo-illustration: WIRED staff; Getty Images For months, the mantra inside the White House has been a MAGA version of 'Keep calm and carry on.' President Donald Trump's inner circle and more junior aides have embraced the term 'No panicans'—specifically around tariffs—to signal there is no room to panic over, and certainly no room for dissent from, the president's economic policies. The administration's areas of focus—deporting immigrants whose labor powers key sectors like agriculture and construction, levying tariffs, and cutting social services among them—have done more than simply increase uncertainty. Hiring and tourism have already slowed dramatically in major US cities from Las Vegas to New York in the first half of the year, and Trump has put almost all the ingredients in place for slow growth amid high unemployment and inflation, the potent combination known as stagflation. Behind the scenes, as more tariffs begin to kick in and punted deadlines approach—particularly a tariff hike on Chinese goods, now set to jump from 30 percent to 80 percent by November 10—some Republicans in Trumpworld's orbit are bracing for impact. They're not panicking just yet, but there are growing concerns around not only rising prices but also a weakening labor market. It may not get the same traction as the price of eggs did under President Joe Biden, but it has some of my sources growing a little bit anxious about where the economy is heading. 'I'm probably surprised that there has not been more concern,' a Republican strategist and former Trump administration official tells me. 'I think the reality is that we're at that sort of inflection point, where retailers were reluctant to raise prices because they feared retaliation from the administration.' 'Now,' this source continues, 'the reality is setting in that these are not transitory. There are going to be economic consequences.' Yet inside the White House, and especially within the president's inner circle, the first wave of tariff announcements, rollbacks, rollbacks on the rollbacks, and announcements of new tariff rates has been met with the same refrain: 'No panicans.' When asked if the administration has a plan to deal with a stagflation scenario and how they're approaching the cooling labor market, the White House used that exact term. 'Inflation continuing to remain cool and growth rebounding in Q2 both suggest stagflation is simply the latest buzzword for panican paranoia,' White House deputy press secretary Harrison Fields says in a statement. Unemployment staying under 5 percent and inflation holding, per the Consumer Price Index, at under 3 percent have encouraged Trump loyalists to keep trusting the plan and claiming that the experts were wrong for doubting them. But warning signs that hiring is coming down and prices are rising are still there, economists tell me, and private trepidation from GOP sources serves as another negative indicator—even if it's a more vibes-based one. Republicans close to the president may be confident everything will be fine, but just because they keep saying 'No panicans' doesn't mean there's no reason to panic. (Trump continues to poll much worse on the economy than he did in his first term, with a Reuters/Ipsos poll from August 13 to August 18 showing his handling of it at only 37 percent approval—near the lows Biden reached on the same question.) If economic trends continue, tariffs—which amount, despite the president's insistence otherwise, to taxes on US companies and ultimately on US consumers—coupled with rising unemployment could be a ticking time bomb. 'If this experiment fails, it's gonna fail horribly, and I think we'll begin to see the impacts of that sooner than later,' says a second Trumpworld strategist. Not Rocket Science There's plenty of cope going around in the GOP and the Trump White House. 'I think we've shown that the inflation bit has been resolved,' a White House official tells me. 'When the private sector is willing to work with us, and is understanding and appreciative of our mandate to reshore manufacturing, we have shown time and time again we are willing to meet with them halfway.' Could there be more concern about the jobs numbers, particularly given a decline in the labor participation rate and revisions bringing job growth from the hundreds of thousands this spring to the tens of thousands? 'No,' a Republican member of Congress close to the president tells me in a text message when asked if they're worried about the labor market. 'Not at all. Revenue from tariffs have been good. Plus big tax cuts just passed. More to come with potential massive trade deal on 15th.' (August 15th was the day Trump met with Russian president Vladimir Putin in Alaska; no such trade deal materialized.) Economists I talked to, though, aren't buying it. 'All signs look pretty pessimistic on the inflation front,' James Angel, a finance professor at Georgetown University, tells me in an email. 'You don't have to be a rocket scientist to figure out that tariffs will increase the prices we pay for imported goods. No amount of spin will change that.' Justin Wolfers, an economist at the University of Michigan, says the labor market is looking grim even before the tariffs have fully kicked in. There's 'no question job growth has slowed,' he says. Wolfers adds that one of Trumpworld's biggest justifications for the tariffs not being a big deal for American consumers simply doesn't hold up. As the first Trumpworld strategist pointed out, some companies—most notably American automakers like General Motors—have shown in their earnings reports that they're willing to eat the cost of the tariffs at the expense of their own profits. 'That's what you would normally expect to happen in the short run, because businesses don't change their prices minute-by-minute every time the president opens his mouth,' Wolfers says. 'Now that the tariffs are set, and they're seeing margin compression, that's the point at which you'd expect businesses to start to think about repricing.' Wolfers says consumers should expect to feel more pain 'in the second half of this year.' Angel says that even a continuation of the status quo with perpetually delayed tariffs could still have devastating consequences. 'The economic chaos with on-again, off-again tariffs has caused business and consumer expectations to drop,' the Georgetown professor explains. 'That in itself is likely to cause a recession.' Citizen Cope Trump's vendetta against Federal Reserve chairman Jerome Powell doesn't calm my sources' jitters, as Trump has made clear that he would like Powell's eventual replacement to cut interest rates, even if doing so conflicts with the Fed's dual mandate of keeping prices stable and employment full. It also doesn't help, sources tell me, that Trump fired the head of the Bureau of Labor Statistics after the most recent job numbers showed significant revisions and a slowdown in hiring over the past several months. (EJ Antoni, Trump's pick to lead the BLS, has little relevant experience beyond being the Heritage Foundation's chief economist; as WIRED reported, a now-deleted Twitter account using his name showed a fixation on red-pilled conspiracy theories.) Another Republican operative in Trumpworld tells me, though, that a more fundamental part of the problem with calibrating around Trump's economic strategy is the old Teflon Don mentality. He always wriggles his way out of a jam, they say, and it can be hard to believe the laws of political or economic gravity apply to him. This source also fits a pattern I've come across in my years of reporting on Trumpworld: a deep distrust of institutions and experts among the staffer class that predates the Trump era. 'Personally, I've always thought the job numbers are super fugazy,' this GOP operative tells me, 'and this goes back to 2012 when I was on the Romney campaign.' For economists like Wolfers, the spin only goes so far. Trump may have found myriad ways to defy the laws of political physics over the years, but the economy doesn't work that way. 'It turns out, the connection with reality has become such a small part of our policy debates that of course they'll be able to deny [any negative impact],' Wolfers says. 'But denying that is absurd on its face … You are already seeing job growth slow. You are already seeing prices rising.' This is an edition of Jake Lahut's Inner Loop newsletter. Read previous newsletters here.
Wall Street Journal
a minute ago
- Wall Street Journal
From $24,000 to $147,000: How Much Daycare Costs Across America
This week, we're bringing you stories about what it costs to raise a child in 2025, and how families are making it work. Every working parent knows that it is staggeringly expensive to put a child through daycare—but it depends a lot on where you live.
