Northern Rare Earth announced on March 26 that it intends to invest RMB32.182 million (USD4.98 million) in cash to acquire 11.31% of the equity of the company's holding subsidiary Magnetic Company held by Baotou Rare Earth Research Institute. At the same time, Northern Rare Earth will increase its capital by way of a debt-for-equity swap of RMB200 million (USD30.95 million) of the total loan provided to Magnetic Company. After completion, the registered capital of Magnetic Company will increase by RMB200 million (USD30.95 million), and the company's shareholding ratio in Magnetic Company would increase accordingly.