Aqua Metals Prices $7 Million Public Offering of Common Stock and Warrants
Aqua Metals (Nasdaq: AQMS) announced a $7 million public offering of 17,500,000 shares of common stock and an equal number of non-redeemable warrants, priced at $0.39 and $0.01 per share and warrant, respectively. The offering, expected to close on May 17, 2024, includes a 30-day option for underwriters to purchase an additional 2,625,000 shares and warrants. The proceeds will support working capital, general corporate purposes, and a proposed $33 million secured credit facility to fund Phase One development of the Sierra AquaRefining Campus. The Benchmark Company, is managing the offering, with PADNOS participating strategically to bolster Aqua Metals' innovation in sustainable battery recycling.
- Raised $7 million through public offering, enhancing financial liquidity.
- Strategic participation by PADNOS, a reputed leader in sustainable materials management.
- Supports a $33 million secured credit facility for Phase One development of Sierra AquaRefining Campus.
- All officers and directors participated, indicating internal confidence.
- Potential 30-day underwriter option to raise additional funds, increasing financial flexibility.
- High dilution potential with issuance of 17,500,000 new shares and warrants.
- Offer price of $0.39 per share is low, indicating potential undervaluation.
- Dependence on completion of the proposed credit facility, which is non-binding and not guaranteed.
Insights
The public offering priced at
The participation of PADNOS, a leading player in sustainable materials management, in Aqua Metals' offering is a strong vote of confidence. PADNOS's involvement and the collaboration on a large DOE MESC grant highlight the innovative potential and technical robustness of Aqua Metals' recycling technology. Such validation from a reputable company could positively influence investor sentiment and market perception. Moreover, the secured credit facility mentioned could provide further financial stability, which is important for a company in the development phase. Investors should consider the strategic partnerships and the potential for securing substantial grants as positive indicators for Aqua Metals' future growth trajectory.
Aqua Metals is positioned in the niche but promising field of sustainable lithium-ion battery recycling. This sector is gaining momentum due to the growing demand for electric vehicles and the need for efficient recycling solutions. The company's AquaRefining technology, which is being developed at the Sierra AquaRefining Campus, aims to offer a more sustainable and less polluting alternative to traditional methods. This technological innovation could provide a competitive edge in the market. However, the success of this technology in large-scale operations remains to be seen and investors should monitor the progress of the Phase One development closely. The funding secured through this public offering is a critical step, but the path to commercial viability will require continuous advancements and validation.
Funds Raised in Support of a
RENO, Nev., May 15, 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 priced its public offering of 17,500,000 shares of its common stock and non-redeemable warrants to purchase 17,500,000 shares of its common stock. The public offering price, before the underwriters’ discount and commissions, for each share of common stock and for each warrant is
All the Company’s officers and directors participated in the public offering. In addition, several long-time stockholders of the Company participated in the offering, including PADNOS. All the securities in the underwritten public offering were sold by the Company.
Participation by PADNOS in Aqua Metals' public offering is also strategic as the companies have been collaborating on a large DOE MESC grant application submitted in March of this year and are expecting to hear the results of that application this Summer. This investment by PADNOS is a strong indicator of the Company's continued innovation, given PADNOS's reputation for innovation and leadership in sustainable materials management. PADNOS's support underscores their confidence in Aqua Metals' pioneering technology after a detailed technical exploration of other technologies and its critical role in advancing sustainable battery recycling.
Aqua Metals intends to use the net proceeds from the offering for working capital and general corporate purposes. The offering is also intended to strengthen the Company’s balance sheet in support of a proposed
The Benchmark Company, LLC acted 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.
A shelf registration statement relating to the shares of common stock and warrants issued in the offering, and exercise of the common stock issuable on exercise of the warrants, was filed with the Securities and Exchange Commission (“SEC”) and declared effective by the SEC. A preliminary prospectus supplement relating to the offering has been filed with the SEC, and a final prospectus supplement will be filed with the SEC. Copies of the final prospectus supplement 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.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, 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.
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. Learn more at www.AquaMetals.com
Safe Harbor
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the expected closing of the 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. 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 under the caption “Risk Factors” in the preliminary prospectus supplement related to the offering. 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
Matt Roberts
Aqua Metals
775-446-7245
matt.roberts@aquametals.com
Source: Aqua Metals
FAQ
What is the value of Aqua Metals' recent public offering?
How many shares and warrants did Aqua Metals issue in the public offering?
At what price were Aqua Metals' shares offered?
When is Aqua Metals expected to close its public offering?
How will Aqua Metals use the proceeds from the public offering?
Why is PADNOS' participation in Aqua Metals' public offering significant?
What will the proposed $33 million credit facility fund?
Who managed Aqua Metals' public offering?
