ASPEN AEROGELS, INC. ANNOUNCES PUBLIC OFFERING OF 4,250,000 SHARES OF COMMON STOCK

Rhea-AI Summary

Aspen Aerogels (NYSE: ASPN), a technology leader in sustainability and electrification solutions, has announced a public offering of 4,250,000 shares of its common stock. The company plans to grant underwriters a 30-day option to purchase up to an additional 637,500 shares. Goldman Sachs & Co. and Morgan Stanley are acting as joint book-running managers for the offering.

Aspen intends to use the net proceeds for working capital, capital expenditures, and general corporate purposes. The offering is being made pursuant to a shelf registration statement on Form S-3 filed with the SEC. A preliminary prospectus supplement and accompanying prospectus will be available on the SEC's website.

Positive

• Potential to raise significant capital for working capital and growth initiatives
• Involvement of major financial institutions as joint book-running managers

Negative

• Potential dilution of existing shareholders' equity
• Possible negative impact on stock price due to increased supply of shares

Insights

Financial Analyst

Aspen Aerogels' announcement of a public offering of 4,250,000 shares of common stock, with an additional option for 637,500 shares, is a significant move to raise capital. This dilutive action will increase the company's outstanding shares by approximately 13%, based on their current share count. The offering's primary purpose is to bolster working capital, fund capital expenditures and support general corporate purposes.

While this capital raise will strengthen Aspen's balance sheet and provide financial flexibility, it comes at the cost of diluting existing shareholders. The market's reaction will likely depend on how effectively the company utilizes these funds to drive growth and improve its financial position. Investors should closely monitor the pricing of the offering and the company's subsequent use of proceeds to assess the long-term value proposition.

The involvement of Goldman Sachs and Morgan Stanley as joint book-running managers lends credibility to the offering, potentially attracting institutional investors. However, the success of this capital raise will ultimately be judged by Aspen's ability to translate the additional funds into tangible business growth and shareholder value creation in the sustainability and electrification solutions market.

Market Research Analyst

Aspen Aerogels' decision to initiate this public offering signals both opportunity and challenge. The company's focus on sustainability and electrification solutions positions it in high-growth sectors, suggesting a need for capital to fuel expansion. However, the timing and size of the offering raise questions about the company's current cash position and burn rate.

The market's reception to this offering will be crucial. If well-received, it could indicate investor confidence in Aspen's growth prospects. Conversely, a lukewarm response might suggest concerns about dilution or the company's ability to effectively deploy the capital. The 15% overallotment option is standard but could further impact dilution if exercised.

Investors should analyze Aspen's recent financial performance, growth trajectory and competitive position to contextualize this capital raise. The use of proceeds for working capital and capital expenditures hints at potential expansion plans or ongoing projects that require significant investment. This offering's success could be a pivotal moment for Aspen, either providing the fuel for accelerated growth or signaling challenges in their current business model.

NORTHBOROUGH, Mass., Oct. 21, 2024 /PRNewswire/ -- Aspen Aerogels, Inc. (NYSE: ASPN) ("Aspen" or the "Company"), a technology leader in sustainability and electrification solutions, today announced that it has commenced an underwritten public offering of 4,250,000 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 637,500 shares of common stock offered by the Company in the public offering at the public offering price, less underwriting discounts and commissions.

Aspen intends to use the net proceeds from the offering for working capital, capital expenditures and general corporate purposes.

Goldman Sachs & Co. LLC and Morgan Stanley are acting as joint book-running managers for the offering.

The public offering is being made pursuant to a shelf registration statement on Form S-3, which was filed with the Securities and Exchange Commission (the "SEC") on October 21, 2024 and became effective upon filing. The offering will be made only by means of a written prospectus supplement and the accompanying prospectus that form part of the registration statement. A preliminary prospectus supplement relating to the offering and accompanying prospectus 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 these securities, when available, may be obtained from: Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at (866) 471-2526, or by email at Prospectus-ny@ny.email.gs.com; or Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, NY 10014. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC.

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. 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. Aspen is headquartered in Northborough, Mass.

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 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, its intended use of proceeds from the offering, 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, 2023 and filed with the SEC on March 7, 2024, 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

How many shares is Aspen Aerogels (ASPN) offering in its public offering?

Aspen Aerogels (ASPN) is offering 4,250,000 shares of its common stock in the public offering, with an additional option for underwriters to purchase up to 637,500 shares.

What will Aspen Aerogels (ASPN) use the proceeds from the public offering for?

Aspen Aerogels (ASPN) intends to use the net proceeds from the offering for working capital, capital expenditures, and general corporate purposes.

Who are the joint book-running managers for Aspen Aerogels' (ASPN) public offering?

Goldman Sachs & Co. and Morgan Stanley are acting as joint book-running managers for Aspen Aerogels' (ASPN) public offering.

When did Aspen Aerogels (ASPN) file the shelf registration statement for this offering?

Aspen Aerogels (ASPN) filed the shelf registration statement on Form S-3 with the SEC on October 21, 2024, which became effective upon filing.