Aspen Aerogels, Inc. Announces Pricing of Upsized Public Offering of $240 Million of Common Stock

Rhea-AI Summary

Aspen Aerogels, Inc. (ASPN) announced the pricing of a public offering of 25,263,158 shares at $9.50 each, aiming for gross proceeds of $240 million. The offering also includes a 30-day option for underwriters to buy an additional 3,789,473 shares. Proceeds will partially fund the construction of a new aerogel manufacturing facility in Statesboro, Georgia. The offering is set to close on December 2, 2022, subject to conditions.

Positive

• Expected gross proceeds of approximately $240 million for the offering.
• Funding for Phase I of a new aerogel manufacturing facility in Georgia, which may enhance future production capabilities.

Negative

• Dilution of existing shares due to the public offering.

NORTHBOROUGH, Mass., Nov. 30, 2022 /PRNewswire/ -- Aspen Aerogels, Inc. (NYSE: ASPN) ("Aspen" or the "Company"), a technology leader in sustainability and electrification solutions, today announced the pricing of an underwritten public offering of 25,263,158 shares of its common stock at a public offering price of $9.50 per share. In addition, the Company has granted the underwriters of the offering a 30-day option to purchase up to an additional 3,789,473 shares of common stock. The gross proceeds to Aspen from this offering are expected to be approximately $240 million, before deducting underwriting discounts and commissions and estimated offering expenses payable by Aspen, and excluding any exercise of the underwriters' option to purchase additional shares of common stock. The offering is expected to close on December 2, 2022, subject to customary closing conditions.

All of the shares in the offering are being sold by Aspen. Aspen intends to use the net proceeds from the offering to partially fund the construction of Phase I of its second aerogel manufacturing facility in Statesboro, Georgia and for other general corporate purposes.

Cowen and Barclays are acting as joint book-running managers for the offering. Piper Sandler and Oppenheimer & Co. are also acting as book-running managers. B. Riley Securities and Craig-Hallum Capital Group are acting as co-managers for the offering.

The public offering is being made pursuant to a registration statement on Form S-3 previously filed with the Securities and Exchange Commission (the "SEC"), which became effective on March 16, 2022. 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. Copies of the prospectus supplement and accompanying prospectus relating to this offering, when available, may be obtained from: Cowen and Company, LLC, c/o Broadridge Financial Solutions, Attention: Prospectus Department, 1155 Long Island Avenue, Edgewood, New York 11717, by telephone at (833) 297-2926, or by email at PostSaleManualRequests@broadridge.com; or Barclays Capital Inc., Attn: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, by telephone: 888-603-5847, or by email: barclaysprospectus@broadridge.com.

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. 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 market. The company's carbon aerogel program seeks to increase the performance of lithium-ion battery cells to enable EV manufacturers to extend the driving range and reduce the cost of electric vehicles. 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 expected closing of Aspen's offering of shares of its common stock, the satisfaction of closing conditions related to such closing,  and the intended use of proceeds from Aspen's offering of shares of its common stock. 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, the following: market risks and uncertainties and the risk that the offering of shares of its common stock will not be consummated, and the satisfaction of customary closing conditions for the offering of shares of its common stock, as well as other risks and uncertainties described under the heading "Risk Factors" in Aspen's Annual Report on Form 10-K for the year ended December 31, 2021 and filed with the SEC on March 1, 2022, 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.

View original content:https://www.prnewswire.com/news-releases/aspen-aerogels-inc-announces-pricing-of-upsized-public-offering-of-240-million-of-common-stock-301689855.html

SOURCE Aspen Aerogels, Inc.

FAQ

What is the public offering price of Aspen Aerogels' shares?

The public offering price is $9.50 per share.

How many shares of common stock is Aspen Aerogels offering?

Aspen Aerogels is offering 25,263,158 shares, with an option for underwriters to purchase an additional 3,789,473 shares.

What are the expected gross proceeds from the offering?

The expected gross proceeds are approximately $240 million.

What will Aspen Aerogels use the net proceeds from the public offering for?

The net proceeds will be used to fund the construction of its second aerogel manufacturing facility and for other general corporate purposes.

When is the offering expected to close?

The offering is expected to close on December 2, 2022.