Critical Metals Corporation (CRML) experienced a sharp intraday decline of 13.49% on Tuesday, as investor sentiment turned negative following recent corporate developments.

The plunge appears to be driven primarily by mounting concerns over equity dilution. The company recently announced a letter of intent to acquire all outstanding shares of Australia-listed European Lithium Ltd. in an all-stock transaction valued at approximately $835 million. Under the proposed terms, European Lithium shareholders would receive 0.035 shares of CRML for each share held, significantly expanding the public float and raising fears of shareholder value dilution.

Additionally, investors engaged in profit-taking after the stock rallied substantially in the prior session on the initial acquisition news. The broader Diversified Metals & Mining sector also traded lower during the session, contributing to the downward pressure on CRML shares.