Fuel Tech, Inc. Announces $25.8 Million Private Placement Priced At-The-Market Under Nasdaq Rules

Rhea-AI Summary

Fuel Tech, Inc. (NASDAQ: FTEK) has announced a private placement of 5 million shares of common stock priced at $5.1625 per share, alongside warrants for an additional 2.5 million shares. This placement is expected to generate gross proceeds of approximately $25.8 million, with the offering set to close around February 17, 2021, pending customary conditions. H.C. Wainwright & Co. is the exclusive placement agent. The securities will not be registered under the Securities Act, necessitating a resale registration statement to be filed within 10 days post-closing.

Positive

• Private placement expected to raise $25.8 million, providing capital for operations.
• Warrants issued may enhance future capital by allowing investors to purchase additional shares.

Negative

• Securities are unregistered, limiting immediate marketability and increasing investment risk.
• Potential dilution of existing shares if warrants are exercised.

Fuel Tech, Inc. (NASDAQ: FTEK) (or "the Company"), a technology company providing advanced engineering solutions for the optimization of combustion systems, emissions control and water treatment in utility and industrial applications, today announced that it has entered into a definitive agreement with investors to purchase 5 million of its shares of common stock in a private placement priced at-the-market under Nasdaq rules. Additionally, the Company has also agreed to issue to the investors common stock purchase warrants to purchase up to an aggregate of 2.5 million shares of Common Stock. The combined purchase price for one share of common stock and a warrant to purchase half a share of common stock is $5.1625. The warrants have an exercise price of $5.10 per share, will be immediately exercisable, and will have a term of exercise that terminates 5.5 years following the effective date of the resale registration statement registering the shares and warrant shares.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

The gross proceeds from the private placement are expected to be $25. 8 million before deducting placement agent fees and other estimated offering expenses. The private placement is expected to close on or about February 17, 2021, subject to the satisfaction of customary closing conditions.

The securities offered in the private placement have not been registered under the Securities Act of 1933, as amended, or applicable under state securities laws. Accordingly, the securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. As part of the transaction, the Company has agreed to file a resale registration statement on Form S-3 with the Securities and Exchange Commission within 10 days of the closing to register the resale of the shares of common stock and shares of common stock underlying the warrants issued in the private placement.

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

About Fuel Tech

Fuel Tech develops and commercializes state-of-the-art proprietary technologies for air pollution control, process optimization, water treatment, and advanced engineering services. These technologies enable customers to operate in a cost-effective and environmentally sustainable manner. Fuel Tech is a leader in nitrogen oxide (NO_x) reduction and particulate control technologies and its solutions have been in installed on over 1,200 utility, industrial and municipal units worldwide. The Company’s FUEL CHEM^® technology improves the efficiency, reliability, fuel flexibility, boiler heat rate, and environmental status of combustion units by controlling slagging, fouling, corrosion and opacity. Water treatment technologies include DGI™ Dissolved Gas Infusion Systems which utilize a patented nozzle to deliver supersaturated oxygen solutions and other gas-water combinations to target process applications or environmental issues. This infusion process has a variety of applications in the water and wastewater industries, including remediation, aeration, biological treatment and wastewater odor management. Many of Fuel Tech’s products and services rely heavily on the Company’s exceptional Computational Fluid Dynamics modeling capabilities, which are enhanced by internally developed, high-end visualization software. For more information, visit Fuel Tech’s web site at www.ftek.com.

NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” as defined in Section 21E of the Securities Exchange Act of 1934, as amended, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and reflect Fuel Tech’s current expectations regarding future growth, results of operations, cash flows, performance and business prospects, and opportunities, as well as assumptions made by, and information currently available to, our management. Fuel Tech has tried to identify forward-looking statements by using words such as “anticipate,” “believe,” “plan,” “expect,” “estimate,” “intend,” “will,” and similar expressions, but these words are not the exclusive means of identifying forward-looking statements. These statements are based on information currently available to Fuel Tech and are subject to various risks, uncertainties, and other factors, including, but not limited to, those discussed in Fuel Tech’s Annual Report on Form 10-K in Item 1A under the caption “Risk Factors,” and subsequent filings under the Securities Exchange Act of 1934, as amended, which could cause Fuel Tech’s actual growth, results of operations, financial condition, cash flows, performance and business prospects and opportunities to differ materially from those expressed in, or implied by, these statements. Fuel Tech undertakes no obligation to update such factors or to publicly announce the results of any of the forward-looking statements contained herein to reflect future events, developments, or changed circumstances or for any other reason. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including those detailed in Fuel Tech’s filings with the Securities and Exchange Commission.

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FAQ

What is the private placement amount for Fuel Tech (FTEK)?

Fuel Tech's private placement amounts to approximately $25.8 million.

When is the expected closing date for the Fuel Tech (FTEK) private placement?

The private placement is expected to close on February 17, 2021.

Who is the placement agent for Fuel Tech's (FTEK) offering?

H.C. Wainwright & Co. is acting as the exclusive placement agent.

What price is Fuel Tech (FTEK) offering its shares at?

The shares are being offered at $5.1625 per share.

What are the terms of the warrants associated with Fuel Tech's (FTEK) private placement?

The warrants allow the purchase of up to 2.5 million shares at an exercise price of $5.10 per share.