Aspen Aerogels, Inc. Announces Proposed Public Offering of $200 Million of Common Stock

Rhea-AI Summary

Aspen Aerogels has announced a proposed underwritten public offering of $200 million of its common stock, with an option for underwriters to purchase an additional 15%. Wood River Capital, an affiliate of Koch, has expressed interest in acquiring up to $100 million in this offering. The proceeds will be used to fund the construction of Phase I of a new aerogel manufacturing facility in Statesboro, Georgia, and for general corporate purposes. The offering is subject to market conditions.

Positive

• Proceeds will partially fund construction of a new manufacturing facility in Statesboro, Georgia.
• Wood River Capital has indicated interest in purchasing up to $100 million of common stock, providing potential demand support.

Negative

• The offering may dilute existing shareholders' equity.
• There are uncertainties regarding market conditions and the timing of the offering's completion.

NORTHBOROUGH, Mass., Nov. 29, 2022 /PRNewswire/ -- Aspen Aerogels, Inc. (NYSE: ASPN) ("Aspen" or the "Company"), a technology leader in sustainability and electrification solutions, today announced that it has commenced a proposed underwritten public offering of $200 million of shares of its common stock. In addition, the Company expects to grant the underwriters of the offering a 30-day option to purchase up to an additional 15% of the shares of common stock offered in the public offering at the public offering price, less underwriting discounts and commissions. All of the shares of common stock to be sold in the offering are being offered by Aspen.   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.

Our existing shareholder Wood River Capital, LLC, an affiliate of Koch Investments Group, LLC ("Koch"), and/or certain of its affiliates have indicated an interest in purchasing up to $100 million of our common stock in this offering at the public offering price. However, because indications of interest are not binding agreements or commitments to purchase, Wood River Capital, LLC and/or certain of its affiliates may determine to purchase fewer securities than they indicate an interest in purchasing or not to purchase any securities in this offering.

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.

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 preliminary 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 preliminary 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, Aspen's planned offering of shares of its common stock, statements regarding the intended use of proceeds from Aspen's offering of shares of its common stock, and Aspen's ability to consummate the 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.

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SOURCE Aspen Aerogels, Inc.

FAQ

What is Aspen Aerogels' proposed public offering amount?

Aspen Aerogels has announced a proposed public offering of $200 million of its common stock.

What will the proceeds from the Aspen Aerogels offering be used for?

The proceeds will be used to partially fund the construction of a new aerogel manufacturing facility in Statesboro, Georgia.

Who has shown interest in buying shares in the Aspen Aerogels offering?

Wood River Capital, an affiliate of Koch, indicated interest in purchasing up to $100 million in common stock.

Is there a risk of dilution for Aspen Aerogels shareholders?

Yes, the public offering could lead to dilution of existing shareholders' equity.

What is the timeline for the Aspen Aerogels public offering?

The offering is subject to market conditions, and there is no assurance regarding the timing or completion.