Amprius Announces Final Results of Offer to Exercise Allowing Public and Private Warrants to be Exercised at a Reduced Price

Rhea-AI Summary

Amprius Technologies has announced the final results of its offer to exercise public and private warrants at a reduced price. The offer, which expired on July 11, 2024, allowed warrant holders to purchase shares of common stock at $1.10 per warrant, reduced from the original price of $11.50. A total of 13,075,664 warrants were exercised, generating approximately $14.4 million in gross proceeds for the company. Warrants not exercised remain at the original exercise price. This offer was part of the company's Tender Offer Statement filed with the SEC on May 13, 2024.

Positive

• Successfully raised approximately $14.4 million in gross proceeds.
• Reduced exercise price from $11.50 to $1.10 per warrant likely increased participation.
• Total of 13,075,664 warrants exercised, indicating strong investor interest.

Negative

• A substantial number of warrants (over 32 million) remain unexercised at the original price of $11.50.
• Expenses and fees will reduce the net proceeds from the $14.4 million gross amount.
• The reduced exercise price may indicate a need for urgent capital, potentially signaling financial stress.

Insights

Financial Analyst

Amprius Technologies has completed a significant financial maneuver by allowing the exercise of both public and private warrants at a reduced price of $1.10 per warrant. This strategy generated approximately $14.4 million in gross proceeds. The original exercise price, set at $11.50 per share, is notably higher, which indicates the company aimed to incentivize warrant holders to convert their warrants into shares, thereby bolstering their cash reserves.

This infusion of capital could support Amprius' R&D activities, operational expansion, or other strategic initiatives. However, it is essential to consider the dilution effect as 13,075,664 new shares will enter the market. Dilution typically leads to a decrease in existing shareholders' ownership percentage and can affect the stock's price negatively in the short term.

For a retail investor, evaluating the long-term potential of Amprius’ Silicon Anode Platform against the immediate dilution impact is crucial. The raised funds can drive growth and innovation, potentially enhancing the company’s value over time.

Market Research Analyst

The reduced exercise price of $1.10 per warrant represents a strategic move by Amprius to capitalize on market interest and raise substantial funds swiftly. This move aligns with common market practices where companies aim to leverage warrant exercises to finance operations without incurring additional debt.

From a market perspective, raising $14.4 million through warrant exercises can provide the company with a critical cash infusion. However, it is essential to monitor how these funds will be utilized. Effective deployment into growth initiatives can offset the dilution effects and create shareholder value.

Investors should also observe market reactions and trading volumes following the new shares' introduction. Increased liquidity could be advantageous, but it may also lead to short-term volatility.

Tech Expert

Amprius Technologies, known for its next-generation lithium-ion batteries with a Silicon Anode Platform, is making strategic financial moves to potentially accelerate its innovation and product development. Silicon anodes can significantly improve battery performance, offering higher energy density and longer life cycles compared to traditional lithium-ion batteries.

The funds raised through the warrant exercises can be pivotal in scaling production, enhancing R&D and maintaining a competitive edge in the rapidly evolving battery technology landscape. For investors, understanding the technological advantages and commercial potential of Silicon Anode Platforms is vital.

Please note that while the financial maneuvering is crucial, the long-term success for shareholders hinges significantly on how well Amprius can leverage this technology to secure market share and drive revenue growth in a competitive industry.

FREMONT, Calif.--(BUSINESS WIRE)-- Amprius Technologies, Inc. (“Amprius” or the “Company”) (NYSE: AMPX), a leader in next-generation lithium-ion batteries with its Silicon Anode Platform, today announced the final results of its previously announced offer (the “Offer to Exercise”) to the holders of the Company’s outstanding public warrants to purchase up to 29,268,236 shares of the Company’s common stock, $0.0001 par value per share (“Common Stock”), and private warrants to purchase up to 16,400,000 shares of Common Stock (together with the public warrants, the “Offering Warrants”), at a temporarily reduced cash exercise price of $1.10 per Offering Warrant. The Offer to Exercise expired at 5:00 p.m. Eastern Time on July 11, 2024.

Based on the final count by Continental Stock Transfer & Trust Co., the depositary agent for the Offer to Exercise, 13,075,664 Offering Warrants to purchase an aggregate of 13,075,664 shares of Common Stock were tendered and exercised for aggregate gross proceeds to the Company of approximately $14.4 million, before deducting information agent fees and other expenses. Offering Warrants that were not tendered and exercised remain in effect at the original exercise price of $11.50 per share of Common Stock.

The Offer to Exercise was made pursuant to the Tender Offer Statement on Schedule TO originally filed by the Company with the Securities and Exchange Commission (the “SEC”) on May 13, 2024 (as amended, the “Original Schedule TO”). The complete terms of the Offer to Exercise were set forth in the Schedule TO and related exhibits filed with the SEC. Copies of the Schedule TO and other related materials are available on the SEC’s website, at www.sec.gov. This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to sell securities.

About Amprius Technologies, Inc.

Amprius Technologies, Inc. is a leading manufacturer of high-energy and high-power lithium-ion batteries producing the industry’s highest known energy density cells. The Company’s commercially available SiMaxx™ batteries deliver up to 450 Wh/kg and 1,150 Wh/L, with third-party validation of 500Wh/kg and 1,300 Wh/L. The Company’s corporate headquarters is in Fremont, California, where it maintains an R&D lab and a MWh scale manufacturing facility for the fabrication of silicon anodes and cells. To serve customer demand, Amprius entered into a lease agreement for an approximately 774,000 square foot facility in Brighton, Colorado and expanded its product portfolio to include the SiCore™ platform.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240612881341/en/

Investors

Tom Colton, Chris Adusei-Poku

Gateway Group, Inc.

949-574-3860

IR@amprius.com

Media

Zach Kadletz, Brenlyn Motlagh

Gateway Group, Inc.

949-574-3860

Amprius@Gateway-grp.com

Source: Amprius Technologies, Inc.

FAQ

What were the final results of Amprius Technologies' warrant exercise offer?

Amprius raised approximately $14.4 million by having 13,075,664 warrants exercised at a reduced price of $1.10 per warrant.

When did the Amprius warrant exercise offer expire?

The offer expired on July 11, 2024, at 5:00 p.m. Eastern Time.

What is the stock symbol for Amprius Technologies?

The stock symbol for Amprius Technologies is AMPX.

How many warrants were exercised in Amprius Technologies' offer?

A total of 13,075,664 warrants were exercised.

What is the original exercise price of Amprius Technologies' warrants?

The original exercise price of the warrants is $11.50 per share of common stock.

How much did Amprius Technologies collect in gross proceeds from the warrant exercise offer?

Amprius Technologies collected approximately $14.4 million in gross proceeds.