MICHAEL BLITZER - 13 Mar 2025 Form 4 Insider Report for USA Rare Earth, Inc. (USAR)

Signature
/s/ Michael Blitzer, Managing Member of Inflection Point Holdings II LLC
Issuer symbol
USAR
Transactions as of
13 Mar 2025
Net transactions value
+$6,000,000
Form type
4
Filing time
17 Mar 2025, 21:39:41 UTC
Previous filing
05 Feb 2025
Next filing
09 Jun 2025

Derivative Securities (e.g., puts, calls, warrants, options, convertible securities)

Type Sym Class Transaction Value $ Shares Change % * Price $ Shares After Date Underlying Class Amount Exercise Price Ownership Footnotes
transaction USAR Series A Preferred Stock, par value $0.0001 per share Award +279,970 279,970 13 Mar 2025 Common Stock, par value $0.0001 per share 279,970 $12.00 Direct F1, F2
transaction USAR Series A Preferred Stock, par value $0.0001 per share Award +131,048 +47% 411,018 13 Mar 2025 Common Stock, par value $0.0001 per share 131,048 $12.00 Direct F2, F3
transaction USAR Series A Preferred Stock, par value $0.0001 per share Award +1,210,824 1,210,824 13 Mar 2025 Common Stock, par value $0.0001 per share 1,210,824 $12.00 By Inflection Point Fund I, LP F2, F4, F5
transaction USAR Series A Preferred Stock, par value $0.0001 per share Award +294,118 +24% 1,504,942 13 Mar 2025 Common Stock, par value $0.0001 per share 294,118 $12.00 By Inflection Point Fund I, LP F2, F5, F6
transaction USAR Warrant to purchase Common Stock Award +178,309 178,309 13 Mar 2025 Common Stock, par value $0.0001 per share 178,309 $12.00 Direct F7, F8
transaction USAR Warrant to purchase Common Stock Award +1,395,220 1,395,220 13 Mar 2025 Common Stock, par value $0.0001 per share 1,395,220 $12.00 By Inflection Point Fund I, LP F5, F7, F9
transaction USAR Warrant to purchase Common Stock Award +294,118 +21% 1,689,338 13 Mar 2025 Common Stock, par value $0.0001 per share 294,118 $12.00 By Inflection Point Fund I, LP F5, F6, F7, F9
transaction USAR Warrants to purchase Common Stock Award $6,000,000 +6,000,000 $1.00 6,000,000 13 Mar 2025 Common Stock, par value $0.0001 per share 6,000,000 $11.50 By Inflection Point Holdings II LLC F10, F11
* An asterisk sign (*) next to the price indicates that the price is likely invalid.

Explanation of Responses:

Id Content
F1 Upon closing of the business combination (the "Business Combination") between the Issuer (which was formerly known as Inflection Point Acquisition Corp. II or "Inflection Point") and USA Rare Earth, LLC ("USARE"), Michael Blitzer acquired 279,970 shares of Series A Preferred Stock, par value $0.0001 per share of the Issuer ("Series A Preferred Stock") in exchange for 269,608 Class A-2 convertible preferred units of USARE ("USARE Class A-2 Convertible Preferred Units") plus accrued and unpaid payment-in-kind dividends, pursuant to the terms and conditions of the business combination agreement, by and among Inflection Point, USARE and IPXX Merger Sub, LLC (the "Business Combination Agreement").
F2 Each share of Series A Preferred Stock is convertible into a number of shares of common stock, par value $0.0001 per share of the Issuer ("Common Stock"), which is determined by dividing the Accrued Value (as defined in the Certificate of Designation for the Series A Preferred Stock (the "Certificate of Designation")) by the conversion price of $12.00 per share, subject to adjustment as set forth in the Certificate of Designation. Initially, each share of Series A Preferred Stock is convertible into one share of Common Stock. The Series A Preferred Stock has no expiration date.
F3 Upon closing of the Business Combination, Michael Blitzer acquired 131,048 shares of Series A Preferred Stock in exchange for his forgiveness of 50% of the outstanding balance owed by the Issuer to him pursuant to a convertible promissory note pursuant to the terms of the securities purchase agreement, by and among Michael Blitzer, the Issuer and USARE.
F4 Upon closing of the Business Combination, Inflection Point Fund I, LP ("Inflection Point Fund") acquired 1,210,824 shares of Series A Preferred Stock in exchange for 1,176,470 USARE Class A-2 Convertible Preferred Units plus accrued and unpaid payment-in-kind dividends, pursuant to the terms and conditions of the Business Combination Agreement.
F5 Inflection Point Asset Management LLC and Inflection Point GP I LLC are the investment manager and general partner, respectively, of Inflection Point Fund. Mr. Blitzer controls each Inflection Point Fund, Inflection Point Asset Management LLC and Inflection Point GP I LLC, including the exercise of voting and investment discretion over the securities held or to be held by Inflection Point Fund. Mr. Blitzer disclaims any beneficial ownership of the securities held by the Sponsor, Inflection Point Fund, Inflection Point Asset Management LLC and Inflection Point GP I LLC other than to the extent of any pecuniary interest he may have therein, directly or indirectly.
F6 Upon the closing of the Business Combination, Inflection Point Fund purchased (i) 294,118 shares of Series A Preferred Stock and (ii) a warrant to purchase 294,118 shares, subject to adjustment, of Common Stock at an initial exercise price of $12.00 per share ("Preferred Investor Warrants"), subject to adjustment, at an aggregate purchase price of $3,000,000.
F7 The exercise price of the Preferred Investor Warrants, and the number shares of Common Stock issuable upon exercise of the Preferred Investor Warrants is subject to adjustment as described under the heading "Description of New USARE'S Securities" in the Issuer's registration statement on Form S-4 (File No. 333-283181).
F8 Upon closing of the Business Combination, Michael Blitzer acquired Preferred Investor Warrants exercisable for 178,309 shares, subject to adjustment, of Common Stock at an initial exercise price of $12.00 per share, subject to adjustment in exchange for warrants of USARE exercisable for an aggregate of 178,309 Class A units of USARE ("USARE Class A Units"), pursuant to the terms and conditions of the Business Combination Agreement.
F9 Upon closing of the Business Combination, Inflection Point Fund acquired Preferred Investor Warrants exercisable for 1,395,220 shares, subject to adjustment, of Common Stock at an initial exercise price of $12.00 per share, subject to adjustment in exchange for warrants of USARE exercisable for an aggregate of 1,395,220 USARE Class A Units, pursuant to the terms and conditions of the Business Combination Agreement.
F10 The warrants are reported as acquired for purposes of Section 16 of the Exchange Act concurrent with the closing of the Business Combination, because, pursuant to their terms, their exercise was not within the control of the Reporting Persons until the closing of the Business Combination. 6,000,000 warrants were initially acquired in a private placement from the Issuer concurrent with the Issuer's initial public offering.
F11 Inflection Point Holdings II LLC is the record holder of such securities. Michael Blitzer is the sole Managing Member of Inflection Point Holdings II LLC and shares voting and investment discretion with respect to the securities held by Inflection Point Holdings II LLC. Michael Blitzer disclaims any beneficial ownership of the securities held by Inflection Point Holdings II LLC other than to the extent of any pecuniary interest he may have therein, directly or indirectly.

Remarks:

Inflection Point Holdings II LLC may be deemed a director by deputization by virtue of its representation on the board of directors of the Issuer. Michael Blitzer is Chairman of the board of directors of the Issuer. See Exhibit 99.1 - Joint Filer Information, which is incorporated herein by reference and describes in further detail the relationships of the Reporting Persons to the Issuer.