Aspen Aerogels, Inc. Announces $75 Million Registered Direct Offering

Rhea-AI Summary

Aspen Aerogels, Inc. (NYSE: ASPN) announced a registered direct offering of 6,060,607 shares of common stock at an offering price of $12.375 per share, expected to close on December 22, 2023. The gross proceeds are expected to be approximately $75 million, to be used for funding capital expenditures, working capital, and other general purposes in preparation for additional growth in its energy industrial and EV thermal barrier business segments.

Insights

Financial Analyst

Aspen Aerogels, Inc.'s recent securities purchase agreement with Hood River Capital Management and other institutional investors is a significant transaction, involving the sale of over 6 million shares. The capital raise of approximately $75 million is a substantial amount, likely to impact the company's financial flexibility. The intended use of proceeds for capital expenditures and working capital suggests an aggressive growth strategy, particularly in the energy industrial and EV thermal barrier segments. Investors should consider the dilutive effect of the new shares on existing shareholders but also weigh this against the potential for accelerated growth and increased market share.

Industry Analyst

The strategic focus on energy industrial and EV thermal barrier business segments indicates Aspen Aerogels is aligning with two fast-growing industries. With the electrification of vehicles and the increasing need for sustainable solutions, the company's investment could position it well within these markets. However, the success of such investments will depend on the company's ability to execute its growth plans effectively and withstand competition from established players. Market trends towards sustainability and electrification are favorable, but the company's operational efficiency and product differentiation will be critical to capitalize on these opportunities.

Legal Expert

It is important to note the offering is made pursuant to an effective shelf registration statement, allowing for a quicker response to market conditions and capital needs. This legal framework provides Aspen Aerogels with the flexibility to access capital markets efficiently. However, potential investors should review the prospectus supplement and accompanying prospectus for a detailed understanding of the risks and specifics of the offering. The adherence to SEC regulations and the transparency of the offering process are essential for maintaining investor confidence and ensuring compliance with securities law.

NORTHBOROUGH, Mass., Dec. 20, 2023 /PRNewswire/ -- Aspen Aerogels, Inc. (NYSE: ASPN) ("Aspen" or the "Company"), a technology leader in sustainability and electrification solutions, today announced that it has entered into a securities purchase agreement with Hood River Capital Management and certain other institutional investors for the purchase and sale in a registered direct offering of 6,060,607 shares of common stock at an offering price of $12.375 per share. The offering is expected to close on December 22, 2023, subject to customary closing conditions.

All of the shares in the offering are being sold by Aspen. The gross proceeds to Aspen from this offering are expected to be approximately $75 million. Aspen intends to use the proceeds from the offering to fund capital expenditures, working capital and other general purposes as it prepares for additional anticipated growth in its energy industrial and EV thermal barrier business segments.

The offering is being made pursuant to an effective shelf registration statement on Form S-3 (File No. 333-263622) previously filed with the Securities and Exchange Commission (the "SEC"), which was declared effective on April 21, 2023. The securities may be offered only by means of a prospectus. A prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available on the SEC's website located at www.sec.gov. 

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities referred to in this press release, nor will there be any sale of any such securities, in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

About Aspen Aerogels, Inc.
Aspen is a technology leader in sustainability and electrification solutions. The Company's aerogel technology enables its customers and partners to achieve their own objectives around the global megatrends of resource efficiency, e-mobility and clean energy. Aspen's PyroThin® products enable solutions to thermal runaway challenges within the electric vehicle ("EV") market. Aspen Battery Materials, the Company's carbon aerogel initiative, seeks to increase the performance of lithium-ion battery cells to enable EV manufacturers to extend the driving range and reduce the cost of EVs. Aspen's Spaceloft® products provide building owners with industry-leading energy efficiency and fire safety. The Company's Cryogel® and Pyrogel® products are valued by the world's largest energy infrastructure companies. Aspen's strategy is to partner with world-class industry leaders to leverage its Aerogel Technology Platform® into additional high-value markets. Headquartered in Northborough, Mass., Aspen manufactures its products at its East Providence, R.I. facilities.

Special Note Regarding Forward-Looking and Cautionary Statements
This press release and any related discussion contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. These statements are not historical facts but rather are based on Aspen's current expectations, estimates and projections regarding Aspen's business, operations and other factors relating thereto. Words such as "may," "will," "could," "would," "should," "anticipate," "predict," "potential," "continue," "expects," "intends," "plans," "projects," "believes," "estimates," "outlook," "assumes," "targets," "opportunity," and similar expressions are used to identify these forward-looking statements. Such forward-looking statements include statements regarding, among other things, the completion of the offering, the anticipated proceeds from the offering and the use of such proceeds.    All such forward-looking statements are based on management's present expectations and are subject to certain factors, risks and uncertainties that may cause actual results, outcome of events, timing and performance to differ materially from those expressed or implied by such statements. These risks and uncertainties include, but are not limited to, those associated with general economic and market conditions and our ability to satisfy closing conditions applicable to the offering, our intended use of proceeds from the offering,  and the other risk factors discussed under the heading "Risk Factors" in Aspen's Annual Report on Form 10-K for the year ended December 31, 2022 and filed with the Securities and Exchange Commission ("SEC") on March 16, 2023, as well as any updates to those risk factors filed from time to time in Aspen's subsequent periodic and current reports filed with the SEC. All statements contained in this press release are made only as of the date of this press release. Aspen does not intend to update this information unless required by law.

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SOURCE Aspen Aerogels, Inc.

FAQ

What is the latest announcement from Aspen Aerogels, Inc. (NYSE: ASPN)?

Aspen Aerogels, Inc. (NYSE: ASPN) announced a registered direct offering of 6,060,607 shares of common stock at an offering price of $12.375 per share, expected to close on December 22, 2023.

How many shares are being offered in the direct offering by Aspen Aerogels, Inc. (NYSE: ASPN)?

Aspen Aerogels, Inc. (NYSE: ASPN) is offering 6,060,607 shares of common stock in the registered direct offering.

What is the expected gross proceeds from the direct offering by Aspen Aerogels, Inc. (NYSE: ASPN)?

The gross proceeds from the direct offering by Aspen Aerogels, Inc. (NYSE: ASPN) are expected to be approximately $75 million.

How does Aspen Aerogels, Inc. (NYSE: ASPN) plan to use the proceeds from the direct offering?

Aspen Aerogels, Inc. (NYSE: ASPN) intends to use the proceeds from the direct offering to fund capital expenditures, working capital, and other general purposes in preparation for additional growth in its energy industrial and EV thermal barrier business segments.