Algoma Steel and Legato Merger Corp. announces completion of merger

SAULT STE. MARIE — On Oct. 19, Algoma Steel Group Inc., parent company of Algoma Steel Inc., a Canadian producer of hot and cold rolled steel sheet and plate products, announced the completion of their merger with Legato Merger Corp., a publicly-traded special purpose acquisition company, taking public a company that is working to build steel. The transaction, including the concurrent private investments, provided net proceeds of approximately USD 306 million to Algoma, which are expected to be used for strategic investments, including Algoma’s proposed transformation to electric arc furnace steelmaking.

Algoma’s common shares are scheduled to begin trading on the Nasdaq Stock Market and the Toronto Stock Exchange under the symbol “ASTL” on October 20, 2021, and its warrants are scheduled to begin trading on the Nasdaq and the TSX on the same day under the symbols “ASTLW” and “ASTL.WT”, respectively. Legato’s shares of common stock, units and warrants will be delisted from the Nasdaq. Each Legato unit will become one Algoma common share and one warrant to purchase one Algoma common share, and shares of Legato common stock and warrants will be exchanged for an equal number of Algoma common shares and warrants, respectively.

Michael McQuade, CEO of Algoma commented on the listing, “We are thrilled to complete our business combination with Legato and return Algoma to the public market. Algoma is building a new era in steel. We are investing in our people and processes, and optimizing our operations to embrace a more sustainable future. In two short years, we upgraded our cornerstone asset, the Direct Strip Production Complex, we constructed our second ladle metallurgy facility, and we embarked on an extensive upgrade to our Plate Mill – Canada’s only discrete plate and heat-treating facility. The momentum is building as we look to a proposed transition to electric arc steelmaking, a fundamental change that has the potential to increase our production capacity while shrinking our environmental footprint with a reduction of more than 70% in carbon emissions.”

David Sgro, CEO of Legato said, “Algoma’s leadership team has successfully positioned the company very competitively within the industry. In addition, they have laid the groundwork to potentially transform Algoma into one of North America’s leading suppliers of green steel. We are excited to complete this combination and our significant investment in Algoma provides a platform for growth as a sustainable employer and advanced manufacturer of quality steel products essential to the automotive, manufacturing, energy, and construction sectors.”