Aqua Metals Announces Proposed Public Offering
Aqua Metals, a leader in sustainable lithium-ion battery recycling, has announced a public offering of common stock and warrants. The company plans to sell all the offered securities and will grant underwriters a 30-day option to purchase up to an additional 15% to cover over-allotments. The offering is expected to price around May 15, 2024. Proceeds will be used for working capital and general corporate purposes. The Benchmark Company, is the sole book-running manager for this offering. The common stock will be free trading, but the warrants will not be listed on Nasdaq. The offering is based on a registration statement filed with the SEC.
- Offering expected to price around May 15, 2024, providing a potential timeline for investors.
- Proceeds to be used for working capital and general corporate purposes, suggesting reinvestment into the company.
- The Benchmark Company, acting as sole book-running manager, indicating professional oversight.
- Potential for dilution of existing shares due to the new public offering of common stock and warrants.
- No assurance whether the offering will be completed or the actual size and terms of the offering, creating uncertainty.
- Warrants will not be listed on Nasdaq, limiting liquidity for these securities.
Insights
Aqua Metals' proposed public offering of common stock and warrants signals a strategic move to raise capital. This influx of funds, earmarked for working capital and general corporate purposes, will likely provide liquidity to support operations and potential expansion. However, such offerings can also lead to share dilution, which might concern current shareholders as it can decrease the value of their holdings. The inclusion of warrants as part of the offering adds an interesting layer, providing investors with the option to purchase more shares at a fixed price, which can be advantageous if the stock price rises.
It’s important to note the 30-day option for underwriters to purchase an additional 15% of shares and warrants to cover over-allotments. This feature underscores the company's flexible approach to capital raising, tailoring the final terms to market conditions. Investors should monitor how this might affect overall share value. Since the common stock purchase warrants won’t be listed on Nasdaq, liquidity for these financial instruments could be limited, impacting investor decisions. A critical factor will be how effectively Aqua Metals uses the capital and demonstrates positive financial metrics in subsequent quarters.
Aqua Metals' move to raise funds through a public offering reflects its proactive stance in securing resources necessary for its sustainable lithium-ion battery recycling operations. This aligns with the growing market focus on sustainable technologies and green energy. The offering's timing and structure are also notable; they suggest confidence in current market conditions and investor appetite. Given the increasing regulatory and consumer demand for environmentally friendly practices, Aqua Metals is positioning itself to leverage these trends.
However, the market will closely watch how the company utilizes the raised capital to achieve its strategic objectives. Efficient use of the proceeds can strengthen Aqua Metals' market position and potentially lead to a higher stock valuation in the long run. Investors should consider the company's past performance and future potential in the green technology sector. The absence of a trading option for the common stock warrants on Nasdaq might limit their attractiveness, but this can be offset by the overall positive sentiment towards eco-friendly initiatives.
RENO, Nev., May 14, 2024 (GLOBE NEWSWIRE) -- Aqua Metals, Inc. (Nasdaq: AQMS) (“Aqua Metals” or the “Company”), a pioneer in sustainable lithium-ion battery recycling, today announced that it is offering to sell shares of its common stock and warrants to purchase common stock in an underwritten public offering. All of the securities in the offering are being sold by Aqua Metals. In addition, the Company will grant the underwriters a 30-day option to purchase up to an additional
Aqua Metals intends to use the net proceeds from the offering for working capital and general corporate purposes.
The Benchmark Company, LLC is acting as the sole book-running manager for the offering. The Liquid Venture Partners group at The Benchmark Company, LLC was responsible for sourcing and executing the offering.
The common stock and common stock purchase warrants described above are being offered by Aqua Metals pursuant to a registration statement previously filed with and subsequently declared effective by the Securities and Exchange Commission (“SEC”). The common stock and common stock purchase warrants and the common stock underlying the warrants will be free trading, but the common stock purchase warrants will not be listed for trading on Nasdaq. A preliminary prospectus supplement relating to the offering has been filed with the SEC and is available on the SEC’s website at http://www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Copies of the preliminary prospectus supplement, and accompanying base prospectus relating to this offering, may be obtained from The Benchmark Company, LLC, 150 East 58th Street, 17th floor, New York, NY 10155, by email at prospectus@benchmarkcompany.com, or by calling +1 (212)-312-6700.
ABOUT AQUA METALS, INC.
Aqua Metals, Inc. 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.
SAFE HARBOR
This press release contains forward-looking statements regarding the proposed public offering and the intended use of proceeds from the offering. The offering is subject to market and other conditions and there can be no assurance as to whether or when the offering may be completed or as to the actual size or terms of the offering. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially, including those risks disclosed in the section “Risk Factors” included in the preliminary prospectus supplement filed with the SEC on May 14, 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.
Contact Information:
Investor Relations
Bob Meyers & Rob Fink
FNK IR
646-878-9204
aqms@fnkir.com
Media
Matt Roberts
Aqua Metals
775-446-7245
matt.roberts@aquametals.com
FAQ
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