Critical Metals Corporation (CRML) experienced a 5.33% decline in pre-market trading on Tuesday, as the stock gave back some of its recent gains.

The plunge appears to be driven by ongoing investor concerns regarding dilution from the company's recent private placement. CRML previously announced a PIPE financing deal, issuing approximately 6 million shares at $10.00 per share to raise $60 million. The significant discount to the market price at the time sparked fears of equity dilution, which had previously triggered sharp sell-offs.

Additionally, the stock may be facing profit-taking pressure following a substantial rally earlier in the session. That rally was fueled by the company's announcement that it signed a letter of intent to acquire all outstanding shares of European Lithium in an all-stock deal valued at approximately $835 million. The acquisition would give CRML full ownership of the Tanbreez rare earth project in Greenland.