ASP Isotopes Inc. Provides Corporate Update

Rhea-AI Summary

ASP Isotopes Inc. (ASPI) and its partner RC14 Inc. have started processing feedstock for enriched Carbon-14 and expect to generate revenues and cash flow from it during 1H 2024. They have also begun constructing a third isotope enrichment facility in South Africa for the production of Ytterbium-176, with production capacity of kilogram quantities of 99.55% 176Yb, and operations expected to commence in 2025.

Insights

Market Research Analyst

The commencement of feedstock processing for enriched Carbon-14 and the construction of a new isotope enrichment facility by ASP Isotopes Inc. are significant developments within the isotope production industry. The ability to generate enriched isotopes such as Carbon-14 and Ytterbium-176 addresses a critical need in various sectors, including medical, research and energy.

From a market perspective, the multi-year carbon-14 contract with a minimum revenue commitment of $2.5 million per annum provides a predictable revenue stream and demonstrates customer confidence. The standby letter of credit further secures the financial transaction, mitigating the risk of non-payment and improving cash flow predictability for ASP Isotopes. The shift towards quarterly deliveries of carbon-14 post the initial batch indicates an operational ramp-up that could lead to increased market share and revenue growth.

The adoption of Quantum Enrichment technology positions ASP Isotopes at the forefront of innovation in isotope production. The partnerships with Small Modular Reactor companies for the production of High-Assay Low-Enriched Uranium (HALEU) could expand their market reach and drive demand for this advanced enrichment technique. The potential disruption of traditional isotope production methods by Quantum Enrichment may lead to cost reductions and efficiency gains, thus affecting competitors' market strategies.

Medical Research Analyst

The strategic move by ASP Isotopes to produce Ytterbium-176, a precursor to Lutetium-177, is timely given the current supply constraints and the growing demand for radiopharmaceuticals in oncology treatments. Lutetium-177 is utilized in targeted cancer therapies, such as those for prostate cancer and the supply shortage has been causing significant delays in patient treatment.

ASP Isotopes' focus on enriching Ytterbium-176 to produce Lutetium-177 could have a profound impact on the healthcare industry by improving the availability of these critical medical isotopes. The potential increase in supply of Lutetium-177 may not only alleviate current shortages but also facilitate the development of new radiopharmaceuticals, as evidenced by the 66 ongoing clinical trials.

The use of Quantum Enrichment technology in the production of isotopes like Ytterbium-176 may also lead to advancements in the purity and quality of the isotopes produced, which is paramount in medical applications. This could result in enhanced efficacy of radiopharmaceuticals and potentially better patient outcomes.

Financial Analyst

ASP Isotopes' announcement reflects a strategic investment in the company's future growth prospects. The processing of enriched Carbon-14 and the construction of a new facility for Ytterbium-176 production are capital-intensive endeavors that signal confidence in the long-term demand for these isotopes.

The financial implications for ASP Isotopes and its stakeholders hinge on the successful execution of these projects. The multi-year contract for Carbon-14, with its minimum revenue commitment, provides a stable cash inflow, which is crucial for offsetting the initial costs and financing ongoing operations. The standby letter of credit is a financial instrument that enhances the credibility of the contract, providing assurance of payment and reducing credit risk.

Investors should monitor the progress of the Quantum Enrichment technology development, as successful commercialization could lead to significant competitive advantages and open up new revenue streams. However, the capital expenditure and R&D costs associated with this technology also represent a considerable risk, especially if the adoption rate does not meet expectations or if there are delays in regulatory approvals or technology maturation.

-Company and its North American commercial partner, RC14, commenced the processing of feedstock for enriched Carbon-14 during December 2023.

-Continues to expect to generate revenues and cash flow from highly enriched Carbon-14 during 1H 2024.

-Commenced the construction of the Company’s third isotope enrichment facility in South Africa, for the production of Ytterbium-176. Expects the facility to have production capacity of kilogram quantities of 99.55% ¹⁷⁶Yb, and to commence operations in 2025.

WASHINGTON, Jan. 10, 2024 (GLOBE NEWSWIRE) -- ASP Isotopes Inc. NASDAQ: ASPI ("ASP Isotopes” or the “Company”), an advanced materials company dedicated to the development of technology and processes for the production of isotopes for use in multiple industries, today provided a corporate update regarding the Company’s operations in Pretoria, South Africa.

During December 2023, the Company and its North American commercial partner, RC14 Inc., started processing the raw materials for the production of highly enriched carbon-14 (¹⁴C), at the Company’s light isotope enrichment facility in Pretoria, South Africa. During June 2023, the Company entered into a multi-year carbon-14 take-or-pay contract with a minimum revenue commitment of $2.5 million per annum. Processing the materials for the first batch of carbon-14 is expected to take approximately six months, with the Company still expecting to receive the first revenues from this contract during 1H 2024. Subsequent production runs are expected to take less than three months, allowing the Company to make quarterly deliveries of carbon-14 in the future. The contract required RC14 to provide an irrevocable standby letter of credit, in lieu of a deposit. The Company can confirm that this standby letter of credit has been received from the customer.

The Company has also started the construction of its third isotope enrichment facility in Pretoria, South Africa. This third enrichment facility is expected to produce kilogram quantities of highly enriched Ytterbium-176 (¹⁷⁶Yb), an important stable isotope used in the production of Lutetium-177 (¹⁷⁷Lu). Lutetium-177 is an emerging beta emitting radiopharmaceutical used in oncology drugs such as Novartis’ Pluvicto. There are currently two FDA approved drugs and over 66 ongoing clinical trials for drugs that require Lutetium-177. The supply chain for this radioisotope has been particularly challenged with recent industry reports highlighting over two months treatment delay due to lack of drug availability ⁽¹⁾. The Company aims to start commercial production of Ytterbium-176 during 2025.

This new Ytterbium-176 enrichment facility will be the Company’s first commercial plant to utilize Quantum Enrichment, an advanced isotope enrichment technique that is currently under development by ASP Isotopes and its energy subsidiary, Quantum Leap Energy LLC (QLE). Quantum Enrichment utilizes lasers and is intended to revolutionize isotope production of certain isotopes such as Ytterbium-176, Nickel-64, HALEU and Lithium-6. The Company recently entered into MOUs with two US-based Small Modular Reactor companies for the use of Quantum Enrichment for the production of HALEU.

^{(1)  Ravi et al, Clinical Implementation of 177Lu-PSMA-617 in the United States: Lessons Learned and Ongoing Challenges; J Nuc Med March 2023, 64 (3) 349-350}

About ASP Isotopes Inc.

ASP Isotopes Inc. is a pre-commercial stage advanced materials company dedicated to the development of technology and processes to produce isotopes for use in multiple industries. The Company employs proprietary technology, the Aerodynamic Separation Process (“ASP technology”). The Company’s initial focus is on producing and commercializing highly enriched isotopes for the healthcare and technology industries. The Company also plans to enrich isotopes for the nuclear energy sector using Quantum Enrichment technology that the Company is developing. The Company has isotope enrichment facilities in Pretoria, South Africa, dedicated to the enrichment of isotopes of elements with a low atomic mass (light isotopes).

There is a growing demand for isotopes such as Silicon-28, which will enable quantum computing, and Molybdenum-100, Molybdenum-98, Zinc-68, Ytterbium-176, and Nickel-64 for new, emerging healthcare applications, as well as Chlorine-37, Lithium-6, and Uranium-235 for green energy applications. The ASP Technology (Aerodynamic Separation Process) is ideal for enriching low and heavy atomic mass molecules. For more information, please visit www.aspisotopes.com.

About RC14 Inc.

RC14 is an isotope producer that concentrates Carbon-14 (¹⁴C) from low specific ¹⁴C harvested from a nuclear waste produced by a CANDU nuclear reactor.   Stable supply of ¹⁴C has been a challenge over the last decades. The abundance of ¹⁴C in one of the residues produced from CANDU nuclear stations combined with the technology developed by CCNuclear and RC14 will provide the Isotope Community worldwide with a reliable and long-term supply of ¹⁴C isotopes. For more information, please visit www.rc14.com.

Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including, without limitation, statements relating to the development of new technology and facilities for the enrichment of isotopes, the funding of operations, and the commencement of supply of isotopes to customers. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Forward-looking statements can be identified by words such as “believes,” “plans,” “anticipates,” “expects,” “estimates,” “projects,” “will,” “may,” “might,” and words of a similar nature. Examples of forward-looking statements include, among others but are not limited to, statements we make regarding expected operating results, such as future revenues and prospects from the potential commercialization of isotopes, future performance under contracts, and our strategies for product development, engaging with potential customers, market position, and financial results. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict, many of which are outside our control. Our actual results, financial condition, and events may differ materially from those indicated in the forward-looking statements based upon a number of factors. Forward-looking statements are not a guarantee of future performance or developments. You are strongly cautioned that reliance on any forward-looking statements involves known and unknown risks and uncertainties. Therefore, you should not rely on any of these forward-looking statements. There are many important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements, including our reliance on the efforts of third parties; our ability to complete the construction and commissioning of our enrichment plants or to commercialize isotopes using the ASP technology or the Quantum Enrichment Process; our ability to obtain regulatory approvals for the production and distribution of isotopes; the financial terms of any current and future commercial arrangements; our ability to complete certain transactions and realize anticipated benefits from acquisitions; contracts, dependence on our Intellectual Property (IP) rights, certain IP rights of third parties; and the competitive nature of our industry. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise. This press release includes market and industry data and forecasts that we obtained from internal research, publicly available information and industry publications and surveys. Industry publications and surveys generally state that the information contained therein has been obtained from sources believed to be reliable. Unless otherwise noted, statements as to our potential market position relative to other companies are approximated and based on third-party data and internal analysis and estimates as of the date of this press release. We have not independently verified this information, and it could prove inaccurate. Industry and market data could be wrong because of the method by which sources obtained their data and because information cannot always be verified with certainty due to the limits on the availability and reliability of raw data, the voluntary nature of the data-gathering process and other limitations and uncertainties. In addition, we do not know all of the assumptions regarding general economic conditions or growth that were used in preparing the information and forecasts from sources cited herein. No information in this press release should be interpreted as an indication of future success, revenues, results of operation, or stock price. All forward-looking statements herein are qualified by reference to the cautionary statements set forth herein and should not be relied upon.

Contacts

Jason Assad– Investor relations
Email: Jassad@aspisotopes.com 
Telephone: 561-709-3043

FAQ

When did ASP Isotopes Inc. and its partner RC14 Inc. commence the processing of feedstock for enriched Carbon-14?

ASP Isotopes Inc. and RC14 Inc. commenced the processing of feedstock for enriched Carbon-14 during December 2023.

When do they expect to generate revenues and cash flow from highly enriched Carbon-14?

They continue to expect to generate revenues and cash flow from highly enriched Carbon-14 during 1H 2024.

What is the production capacity of the third isotope enrichment facility in South Africa?

The third isotope enrichment facility in South Africa is expected to have production capacity of kilogram quantities of 99.55% 176Yb.

When do they expect the third isotope enrichment facility in South Africa to commence operations?

The third isotope enrichment facility in South Africa is expected to commence operations in 2025.

What is the ticker symbol for ASP Isotopes Inc.?

The ticker symbol for ASP Isotopes Inc. is ASPI.