Perma-Fix Announces Pricing of $22 Million Public Offering of Common Stock

Rhea-AI Summary

Perma-Fix Environmental Services (PESI) has priced its public offering of 2,200,000 shares of common stock at $10.00 per share, expecting to raise approximately $22 million in gross proceeds. The company granted underwriters a 30-day option to purchase up to 330,000 additional shares. The offering is set to close around December 19, 2024.

The net proceeds will fund: R&D and business development for their patent-pending Perma-FAS process for PFAS destruction, including installation of a second-generation commercial treatment unit; facility maintenance costs; and general corporate purposes. Craig-Hallum is acting as sole managing underwriter, with Wellington Shields serving as financial advisor.

Positive

• Raising $22 million in gross proceeds to strengthen balance sheet
• Investment in patent-pending Perma-FAS technology development
• Planned installation of second-generation commercial treatment unit

Negative

• Potential dilution for existing shareholders through 2.2 million new shares
• Additional potential dilution through 330,000 share underwriter option

Insights

Financial Analyst

This $22 million public offering at $10.00 per share represents a significant capital raise for Perma-Fix, with proceeds earmarked for strategic growth initiatives. The offering price shows confidence in the company's valuation, considering its market cap of $182.5 million. The dilution impact appears manageable at 2.2 million shares, with potential for an additional 330,000 shares through the underwriter's option.

The planned allocation of funds towards the Perma-FAS PFAS destruction technology development and commercialization could be a key growth driver, given the increasing regulatory focus on PFAS contamination. The investment in facility maintenance and working capital should strengthen the company's operational foundation. The involvement of Craig-Hallum as sole managing underwriter adds credibility to the offering.

Environmental Technology Analyst

The strategic focus on PFAS treatment technology development through the Perma-FAS process positions Perma-Fix at the forefront of a important environmental challenge. PFAS contamination is a growing concern globally, with increasing regulatory pressure and market demand for effective treatment solutions. The commitment to install a second-generation commercial treatment unit signals progression from R&D to commercialization phase, potentially accelerating market penetration.

The patent-pending status of their PFAS destruction process could provide competitive advantages in the expanding environmental remediation market. This capital raise demonstrates investor confidence in the technology's commercial viability and market potential.

ATLANTA, Dec. 18, 2024 (GLOBE NEWSWIRE) -- Perma-Fix Environmental Services, Inc. (Nasdaq: PESI) (“Perma-Fix” or the “Company”), today announced the pricing of its previously announced underwritten public offering of 2,200,000 shares of its common stock at a price to the public of $10.00 per share. Perma-Fix expects the gross proceeds from the offering to be approximately $22 million before deducting the underwriting discount and other estimated offering expenses. In connection with the offering, Perma-Fix has granted the underwriter a 30-day option to purchase up to 330,000 additional shares of its common stock at the public offering price, less the underwriting discount. The offering is expected to close on or about December 19, 2024, subject to the satisfaction of customary closing conditions.

Perma-Fix intends to use the net proceeds from the offering to fund (i) continued R&D and business development relating to the Company’s patent-pending Perma-FAS process for the destruction of PFAS, as well as the cost of installing at least one second-generation Perma-FAS commercial treatment unit; (ii) ongoing facility cap-ex and maintenance costs; as well as (iii) general corporate and working capital purposes.

Craig-Hallum is acting as sole managing underwriter for the offering. Wellington Shields is acting as financial advisor to the Company for the offering.

The shares described above are being offered by Perma-Fix pursuant to a shelf registration statement on Form S-3 (File No. 333-283555), including a base prospectus, that was filed with the Securities and Exchange Commission (SEC) and declared effective on December 12, 2024. The offering is being made only by means of a prospectus supplement, and the accompanying prospectus that will form a part of the registration statement. A preliminary prospectus supplement and accompanying prospectus relating to the offering was filed with the SEC on December 17, 2024. The final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and available on the SEC’s website at www.sec.gov. When available, copies of the final prospectus supplement and accompanying prospectus relating to the offering may be obtained from Craig-Hallum Capital Group LLC, Attention: Equity Capital Markets, 222 South Ninth Street, Suite 350, Minneapolis, MN 55402, by telephone at (612) 334-6300 or by email at prospectus@chlm.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, 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 Perma-Fix
Perma-Fix is a nuclear services company and leading provider of nuclear and mixed waste management services. The Company’s nuclear waste services include management and treatment of radioactive and mixed waste for hospitals, research labs and institutions, federal agencies, including the U.S. Department of Energy (“DOE”), the U.S. Department of Defense (“DOD”), and the commercial nuclear industry. The Company’s nuclear services group provides project management, waste management, environmental restoration, decontamination and decommissioning, new build construction, and radiological protection, safety and industrial hygiene capability to our clients. The Company operates four nuclear waste treatment facilities and provides nuclear services at DOE, DOD and commercial facilities, nationwide.

Please visit us at http://www.perma-fix.com.

Forward-Looking Statements
This press release contains “forward-looking statements” which are based largely on the Company’s expectations and are subject to various business risks and uncertainties, certain of which are beyond the Company's control. Forward-looking statements generally are identifiable by use of the words such as “believe”, “expects”, “intends”, “anticipate”, “plan to”, “estimates”, “projects” and similar expressions. Forward-looking statements include, but are not limited to: the Company’s ability to satisfy the closing conditions related to the offering and the overall timing and completion of such closing and the use of the net proceeds of the offering; accepting commercial waste for destruction before the end of the year; well positioned; treatment of effluent from DFLAW facility; and cost-effective solution for Hanford site tank waste. While the Company believes the expectations reflected in this news release are reasonable, it can give no assurance such expectations will prove to be correct. There are a variety of factors which could cause future outcomes to differ materially from those described in this release, including, without limitation, future economic conditions; industry conditions; competitive pressures; our ability to apply and market our new technologies; the government or such other party to a contract granted to us fails to abide by or comply with the contract or to deliver waste as anticipated under the contract or terminates existing contracts; Congress fails to provides funding for the DOD’s and DOE’s remediation projects; inability to obtain new foreign and domestic remediation contracts; and the additional factors referred to under “Risk Factors” and “Special Note Regarding Forward-Looking Statements” of our 2023 Form 10-K and Form 10-Qs for quarters ended March 31, 2024, June 30, 2024 and September 30, 2024. The Company makes no commitment to disclose any revisions to forward-looking statements, or any facts, events or circumstances after the date hereof that bear upon forward-looking statements.

Contacts
David K. Waldman-US Investor Relations
Crescendo Communications, LLC
(212) 671-1021

Herbert Strauss-European Investor Relations
herbert@eu-ir.com
+43 316 296 316

FAQ

How much did Perma-Fix (PESI) raise in their December 2024 public offering?

Perma-Fix raised approximately $22 million in gross proceeds through a public offering of 2,200,000 shares priced at $10.00 per share.

What will Perma-Fix (PESI) use the proceeds from their 2024 stock offering for?

The proceeds will fund R&D and business development for their Perma-FAS process, installation of a second-generation commercial treatment unit, facility maintenance costs, and general corporate purposes.

What is the price per share for PESI's December 2024 public offering?

The public offering was priced at $10.00 per share.

How many additional shares can underwriters purchase in PESI's December 2024 offering?

Underwriters have a 30-day option to purchase up to 330,000 additional shares at the public offering price.

When is PESI's December 2024 public offering expected to close?

The offering is expected to close on or about December 19, 2024, subject to customary closing conditions.