Aqua Metals Announces Continued Progress on Sierra ARC Buildout and Ongoing Efforts to Finance Remainder of Construction and Commissioning
Aqua Metals (NASDAQ: AQMS), a sustainable lithium battery recycling company, provided an update on its Sierra ARC facility and financing efforts. The company has made progress on the facility's development but faces challenges in securing additional financing due to high interest rates and declining lithium mineral prices. Key points include:
1. Sierra ARC development progressed with utility upgrades and equipment installations.
2. A previously announced $33 million credit facility is currently suspended.
3. The company is pursuing alternative financing options.
4. A reduction in workforce has been implemented to preserve cash.
5. The Sierra ARC timeline has shifted to 2025 for commissioning.
6. The company raised $7.3 million in a recent funding round.
7. Pilot facility operations continue to showcase the AquaRefining™ technology.
Aqua Metals (NASDAQ: AQMS), un'azienda sostenibile di riciclo di batterie al litio, ha fornito un aggiornamento sulla sua struttura Sierra ARC e sugli sforzi di finanziamento. L'azienda ha fatto progressi nello sviluppo della struttura, ma affronta sfide nel garantire finanziamenti aggiuntivi a causa dei tassi di interesse elevati e del calo dei prezzi dei minerali di litio. Punti chiave includono:
1. Lo sviluppo della Sierra ARC ha fatto progressi con aggiornamenti delle utility e installazioni di attrezzature.
2. Un credito di $33 milioni precedentemente annunciato è attualmente sospeso.
3. L'azienda sta cercando opzioni di finanziamento alternative.
4. È stata attuata una riduzione della forza lavoro per preservare la liquidità.
5. La tempistica per l'attivazione della Sierra ARC è stata spostata al 2025.
6. L'azienda ha raccolto $7,3 milioni in un recente ciclo di finanziamento.
7. Le operazioni della struttura pilota continuano a dimostrare la tecnologia AquaRefining™.
Aqua Metals (NASDAQ: AQMS), una empresa sostenible de reciclaje de baterías de litio, proporcionó una actualización sobre su instalación Sierra ARC y los esfuerzos de financiación. La empresa ha avanzado en el desarrollo de la instalación, pero enfrenta desafíos para asegurar financiamiento adicional debido a las altas tasas de interés y la caída de los precios de los minerales de litio. Los puntos clave incluyen:
1. El desarrollo de la Sierra ARC ha progresado con mejoras en los servicios públicos e instalaciones de equipos.
2. Una línea de crédito de $33 millones previamente anunciada está actualmente suspendida.
3. La empresa está buscando opciones de financiamiento alternativas.
4. Se ha implementado una reducción de la fuerza laboral para preservar el efectivo.
5. La línea de tiempo para la puesta en marcha de la Sierra ARC se ha trasladado a 2025.
6. La empresa recaudó $7.3 millones en una reciente ronda de financiamiento.
7. Las operaciones de la instalación piloto continúan demostrando la tecnología AquaRefining™.
Aqua Metals (NASDAQ: AQMS)는 지속 가능한 리튬 배터리 재활용 회사로, Sierra ARC 시설 및 자금 조달 노력에 대한 업데이트를 제공했습니다. 회사는 시설 개발에서 진전을 이루었지만, 높은 금리와 하락하는 리튬 광물 가격으로 인해 추가 자금을 확보하는 데 어려움을 겪고 있습니다. 주요 사항은 다음과 같습니다:
1. Sierra ARC 개발이 유틸리티 업그레이드 및 장비 설치와 함께 진행되었습니다.
2. 이전에 발표된 3,300만 달러 규모의 신용 시설이 현재 중단되었습니다.
3. 회사는 대체 자금 조달 옵션을 모색하고 있습니다.
4. 현금 보전을 위해 인력 감축이 시행되었습니다.
5. Sierra ARC의 가동 일정이 2025년으로 변경되었습니다.
6. 회사는 최근 자금 조달 라운드에서 730만 달러를 모금했습니다.
7. 파일럿 시설 운영은 AquaRefining™ 기술을 계속 선보이고 있습니다.
Aqua Metals (NASDAQ: AQMS), une entreprise de recyclage de batteries au lithium durable, a fourni une mise à jour sur son installation Sierra ARC et ses efforts de financement. L'entreprise a progressé dans le développement de l'installation mais rencontre des défis pour obtenir un financement supplémentaire en raison des taux d'intérêt élevés et de la baisse des prix des minéraux de lithium. Les points clés incluent :
1. Le développement de la Sierra ARC a progressé avec des mises à niveau des services publics et des installations d'équipement.
2. Une ligne de crédit de 33 millions de dollars précédemment annoncée est actuellement suspendue.
3. L'entreprise recherche des options de financement alternatives.
4. Une réduction de la main-d'œuvre a été mise en œuvre pour préserver la trésorerie.
5. Le calendrier de mise en service de la Sierra ARC a été reporté à 2025.
6. L'entreprise a levé 7,3 millions de dollars lors d'un récent tour de financement.
7. Les opérations de l'installation pilote continuent de mettre en avant la technologie AquaRefining™.
Aqua Metals (NASDAQ: AQMS), ein nachhaltiges Unternehmen für das Recycling von Lithiumbatterien, hat ein Update zu seiner Sierra ARC-Anlage und den Finanzierungsbemühungen gegeben. Das Unternehmen hat Fortschritte beim Ausbau der Anlage gemacht, sieht sich jedoch Herausforderungen gegenüber, zusätzliche Finanzierungen aufgrund hoher Zinssätze und sinkender Lithiummineralpreise zu sichern. Die wichtigsten Punkte sind:
1. Die Entwicklung der Sierra ARC wurde mit Versorgungs-Upgrades und Geräteinstallationen vorangetrieben.
2. Eine zuvor angekündigte Kreditlinie über 33 Millionen Dollar ist derzeit ausgesetzt.
3. Das Unternehmen strebt alternative Finanzierungsmöglichkeiten an.
4. Eine Reduzierung der Belegschaft wurde eingeführt, um Liquidität zu erhalten.
5. Der Zeitplan für die Inbetriebnahme der Sierra ARC wurde auf 2025 verschoben.
6. Das Unternehmen hat in einer jüngsten Finanzierungsrunde 7,3 Millionen Dollar gesammelt.
7. Die Betriebsabläufe der Pilotanlage demonstrieren weiterhin die AquaRefining™-Technologie.
- Completed a $7.3 million net funding round, indicating investor confidence
- Sierra ARC facility development progressing with major infrastructure upgrades completed
- Pilot facility operating 24x5, demonstrating scalability and efficiency of AquaRefining™ technology
- Implemented cash preservation initiatives, extending runway to approximately one year
- $33 million credit facility suspended due to high interest rates and declining lithium mineral prices
- Sierra ARC commissioning timeline shifted from late 2024 to 2025
- Reduction in workforce implemented due to financing delays
- Need for additional financing to complete Sierra ARC facility
Insights
The news is concerning for Aqua Metals' short-term prospects. The company's inability to secure the anticipated $33 million credit facility due to high interest rates and declining lithium prices (
The company's cash preservation initiatives, including workforce reduction and asset disposition, provide a 12-month runway. However, this delays the Sierra ARC facility commissioning to 2025, potentially impacting revenue projections. The
Despite financial challenges, Aqua Metals' technological progress remains noteworthy. The consistent 24x5 operation of the pilot facility demonstrates the scalability of their AquaRefining™ technology. This operational success is important for validating the process to potential investors and partners.
The advancements at the Sierra ARC facility, including utility upgrades and equipment installations, show tangible progress. However, the delayed timeline might allow competitors to catch up. The company's emphasis on a low-cost, decarbonized and sodium sulfate-free process could be a significant differentiator in the lithium battery recycling market, especially as sustainability becomes increasingly important in the tech industry.
The lithium battery recycling market faces headwinds due to the recent decline in lithium prices, impacting the economic viability of recycling operations. This market volatility underscores the need for recycling companies to have robust financial buffers and diversified revenue streams.
Aqua Metals' continued engagement with strategic partners like 6K Energy, Dragonfly Energy and Yulho Materials is important for securing a stable supply chain and market presence. The company's focus on producing battery-grade materials for industry partners through its pilot facility could help maintain investor interest and potentially lead to offtake agreements. However, the delayed commissioning of Sierra ARC may allow competitors to gain market share, making Aqua Metals' unique selling propositions even more critical for future success.
Company continues to pursue financing for Sierra ARC through commissioning, impacted by further dips in battery minerals pricing;
Deploys cash preservation initiatives, and extends pilot operations to support continued strategic partner development
RENO, Nev., Aug. 05, 2024 (GLOBE NEWSWIRE) -- Aqua Metals, Inc. (NASDAQ: AQMS), a pioneer in sustainable lithium battery recycling, today provided an update on its progress and strategic initiatives. Development of its first commercial scale black mass recycling facility, the Sierra ARC, has progressed throughout Q2, including completion of a five megawatt upgrade of utility power, installation of switchgear, steel superstructures, equipment platform with two overhead cranes, as well as equipment deliveries, including tanks, evaporation systems, controls systems, and other key equipment.
To complete the Sierra ARC, the Company will need additional financing. In May 2024, Aqua Metals announced the signing of a non-binding term sheet with one of the world’s largest privately held companies for a secured credit facility of up to
The Company also announced that due to the delay in funding, it has completed a reduction in force of personnel hired largely in expectation of securing the required funding for the completion of the Sierra ARC and commencement of operations. The Company however does not expect the reduction in force to materially impact its current pilot operations or continuing research and development. Although the Sierra ARC continues to be at or under budget to date, attributable to both the benefits of piloting Li AquaRefining™ technology in 2022 and 2023 and the disciplined approach to procurement and build, the timeline is now shifting into 2025 compared to the previously planned late 2024 commissioning. Management believes that the reduction in force, coupled with non-essential asset disposition, deferral of certain expenses and more standard equipment leasing, will provide approximately one year of cash runway with no other sources of cash.
Second Quarter Highlights:
1. Advancements at the Sierra ARC
The Sierra ARC facility has surpassed numerous milestones, including the completion of floor reinforcement, equipment foundations, electric utility and switchgear upgrades, and mezzanine installation with overhead cranes. We have begun receiving and installing the initial equipment, including tanks, chillers, evaporators, and controls with testing underway.
2. Pilot Facility Operations
The pilot facility has been consistently operating 24x5, showcasing the scalability and efficiency of Aqua Metals' AquaRefining™ technology. We believe these operations provide critical process validation data as a part of due diligence conducted by financing counterparties.
3. Successful Capital Raise
Aqua Metals completed a
Looking Ahead
As Aqua Metals moves forward into the latter half of 2024, the Company is focused on achieving several strategic objectives:
- Continued engagement with counterparties to finance the remainder of the Sierra ARC build in a way that does not require overburdened debt service. This includes project finance, strategic financial and/or industry investments.
- Continued Equipment Provisioning at the Sierra ARC: Upon successful completion of the financing efforts, the Company is in a position to move quickly to complete the remaining mechanical, electrical, plumbing, process equipment installs within 2 to 3 quarters and commence commissioning and scaling.
- Expanding Strategic Partnerships: Aqua Metals continues to explore and solidify partnerships that enhance its supply chain and expand its market presence. Collaborations with announced industry leaders like 6K Energy, Dragonfly Energy, and Yulho Materials as well as further developing unannounced partners are pivotal to the Company’s strategy.
- Continued Pilot Operations: The Company intends to continue operations of its pilot facility at the Innovation Center and produce battery grade materials for existing and prospective industry partners. The Company believes that continued pilot operations will also serve as an ongoing operating showcase of low cost, decarbonized, sodium sulfate free, safe and clean working environment in contrast to smelting and other hydrometallurgical methods.
Conference Call and Webcast
The Company will hold a conference call to discuss results and corporate developments today at 4:30 p.m. ET. Investors can access the live conference call at https://event.webcasts.com/aqms or from the investor relations section of the Company’s website at https://ir.aquametals.com/. Alternatively, interested parties can access the audio call by dialing 877-407-9708 (toll-free) or 201-689-8259 (international).
Following the conclusion of the live event, a replay will be available by dialing 877-660-6853 or 201-612-7415 and using passcode 13748295. The webcast replay will also be available in the “News / Events” section of the Aqua Metals website.
About Aqua Metals
Aqua Metals, Inc. (NASDAQ: AQMS) is reinventing metals recycling with its patented AquaRefining™ technology. The Company is pioneering a sustainable recycling solution for materials strategic to energy storage and electric vehicle manufacturing supply chains. AquaRefining™ is a low-emissions, closed-loop recycling technology that replaces polluting furnaces and hazardous chemicals with electricity-powered electroplating to recover valuable metals and materials from spent batteries with higher purity, lower emissions, and minimal waste. Aqua Metals is based in Reno, NV and operates the first sustainable lithium battery recycling facility at the Company’s Innovation Center in the Tahoe-Reno Industrial Center. To learn more, please visit www.aquametals.com.
Aqua Metals Social Media
Aqua Metals has used, and intends to continue using, its investor relations website (https://ir.aquametals.com), in addition to its Twitter, Threads, LinkedIn and YouTube accounts at https://twitter.com/AquaMetalsInc (@AquaMetalsInc), https://www.threads.net/@aquametalsinc (@aquametalsinc), https://www.linkedin.com/company/aqua-metals-limited and https://www.youtube.com/@AquaMetals respectively, as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
Safe Harbor
This press release contains forward-looking statements concerning Aqua Metals, Inc. Forward-looking statements include, but are not limited to, our plans, objectives, expectations and intentions and other statements that contain words such as "expects," "contemplates," "anticipates," "plans," "intends," "believes", "estimates", "potential" and variations of such words or similar expressions that convey the uncertainty of future events or outcomes, or that do not relate to historical matters. The forward-looking statements in this press release include our expectations for our pilot and commercial-scale recycling plants, our ability to recycle lithium-ion batteries and the expected benefits of recycling lithium-ion batteries. Those forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially. Among those factors are: (1) the risk that we may not be able to successfully negotiate and conclude a definitive license agreement with Yulho or a definitive pilot facility agreement with 6K, (2) even if we are to conclude definitive agreements with Yulho and/or 6K, the risk that we may not achieve the expected benefits from such relationships; (3) the risk that we may not be able to acquire the funding necessary to develop our recently acquired five-acre campus; (4) the risk that we may not be able to develop the recycling facility on the five-acre campus within the expected time or at all; (5) even if we are able to develop the recycling facility, the risk that we may not realize the expected benefits; (6) the risk that potential licensees may refuse or be slow to adopt our AquaRefining process as an alternative in spite of the perceived benefits of AquaRefining; (7) the risk that we may not realize the expected economic benefits from any licenses we may enter into; and (8) those risks disclosed in the section "Risk Factors" are included in our Annual Report on Form 10-K filed on March 28, 2024. Aqua Metals cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur, except as required by law.
Contact Information
Investor Relations
Bob Meyers & Rob Fink
FNK IR
646-878-9204
aqms@fnkir.com
Media
David Regan
Aqua Metals
775-446-5398
David.Regan@aquametals.com
Source: Aqua Metals
| AQUA METALS, INC. Condensed Consolidated Balance Sheets - Unaudited (in thousands, except share and per share amounts) | ||||||||
| June 30, 2024 | December 31, 2023 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 7,833 | $ | 16,522 | ||||
| Note receivable - LINICO | 400 | 600 | ||||||
| Accounts receivable | — | 67 | ||||||
| Inventory | 908 | 929 | ||||||
| Prepaid expenses and other current assets | 174 | 181 | ||||||
| Total current assets | 9,315 | 18,299 | ||||||
| Non-current assets | ||||||||
| Property, plant and equipment, net | 17,009 | 10,347 | ||||||
| Intellectual property, net | 191 | 281 | ||||||
| Other assets | 7,706 | 4,673 | ||||||
| Total non-current assets | 24,906 | 15,301 | ||||||
| Total assets | $ | 34,221 | $ | 33,600 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 1,679 | $ | 1,836 | ||||
| Accrued expenses | 2,908 | 2,467 | ||||||
| Lease liability, current portion | 288 | 275 | ||||||
| Note payable, current portion | 2,979 | 35 | ||||||
| Total current liabilities | 7,854 | 4,613 | ||||||
| Non-current liabilities | ||||||||
| Lease liability, non-current portion | 593 | — | ||||||
| Note payable, non-current portion | — | 2,923 | ||||||
| Total liabilities | 8,447 | 7,536 | ||||||
| Commitments and contingencies (see Note 12) | ||||||||
| Stockholders’ equity | ||||||||
| Common stock; | 134 | 108 | ||||||
| Additional paid-in capital | 260,554 | 249,687 | ||||||
| Accumulated deficit | (234,554 | ) | (223,215 | ) | ||||
| Treasury stock, at cost; common shares: 456,646 and 428,566 as of June 30, 2024 and December 31, 2023, respectively | (360 | ) | (516 | ) | ||||
| Total stockholders’ equity | 25,774 | 26,064 | ||||||
| Total liabilities and stockholders’ equity | $ | 34,221 | $ | 33,600 | ||||
| AQUA METALS, INC. Condensed Consolidated Statements of Operations - Unaudited (in thousands, except share and per share amounts) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Operating cost and expense | ||||||||||||||||
| Plant operations | $ | 2,373 | $ | 1,481 | $ | 4,582 | $ | 2,546 | ||||||||
| Research and development cost | 363 | 525 | 951 | 970 | ||||||||||||
| Gain on disposal of property, plant and equipment | — | (3 | ) | — | (23 | ) | ||||||||||
| General and administrative expense | 2,863 | 2,849 | 5,858 | 5,855 | ||||||||||||
| Total operating expense | 5,599 | 4,852 | 11,391 | 9,348 | ||||||||||||
| Loss from operations | (5,599 | ) | (4,852 | ) | (11,391 | ) | (9,348 | ) | ||||||||
| Other income and (expense) | ||||||||||||||||
| Interest expense | (84 | ) | (255 | ) | (190 | ) | (431 | ) | ||||||||
| Interest and other income | 99 | 348 | 245 | 414 | ||||||||||||
| Total other income (expense), net | 15 | 93 | 55 | (17 | ) | |||||||||||
| Loss before income tax expense | (5,584 | ) | (4,759 | ) | (11,336 | ) | (9,365 | ) | ||||||||
| Income tax expense | 3 | — | 3 | — | ||||||||||||
| Net loss | $ | (5,587 | ) | $ | (4,759 | ) | $ | (11,339 | ) | $ | (9,365 | ) | ||||
| Weighted average shares outstanding, basic and diluted | 123,793,140 | 84,184,884 | 116,923,889 | 82,743,345 | ||||||||||||
| Basic and diluted net loss per share | $ | (0.05 | ) | $ | (0.06 | ) | $ | (0.10 | ) | $ | (0.11 | ) | ||||
FAQ
What progress has Aqua Metals (AQMS) made on its Sierra ARC facility?
Why was the $33 million credit facility for Aqua Metals (AQMS) suspended?
How has Aqua Metals (AQMS) adjusted its timeline for the Sierra ARC commissioning?
What financing alternatives is Aqua Metals (AQMS) pursuing for the Sierra ARC project?
