Aduro Clean Technologies Announces Closing of Underwriter’s Over-Allotment Option in Public Offering

Rhea-AI Summary

Aduro Clean Technologies announced the closing of its underwriter's over-allotment option, raising an additional US$1.2 million by issuing 142,180 common shares and 71,090 warrants. The warrants have an exercise price of US$10.13 per share, are immediately exercisable, and expire in three years. D. Boral Capital LLC served as the sole book-running manager. The offering was made under an effective shelf registration on Form F-10 and the company's Canadian base shelf prospectus. Proceeds will fund R&D, construction of a Demonstration-Scale plant, and general corporate purposes. Aduro, trading on Nasdaq (ADUR), CSE (ACT), and FSE (9D5), specializes in water-based Hydrochemolytic Technology for recycling waste plastics and converting heavy crude and renewable oils into higher-value products.

Positive

• Additional capital raise of US$1.2 million strengthens company's financial position
• Funds will support development of Demonstration-Scale plant and ongoing R&D
• Successful exercise of over-allotment option indicates strong investor interest
• Warrants provide potential for additional future capital if exercised

Negative

• Potential dilution for existing shareholders from additional share issuance
• Warrant exercise at US$10.13 could create future selling pressure

Insights

Financial Markets Analyst

Aduro raised an additional US$1.2M through an over-allotment option, strengthening its capital position for R&D and demonstration plant construction.

Aduro Clean Technologies has successfully closed an additional US$1.2 million in financing through D. Boral Capital's full exercise of its underwriter's over-allotment option. This transaction involves the issuance of 142,180 common shares and warrants to purchase an additional 71,090 shares, complementing their previous public offering. The warrants, exercisable at US$10.13 per share, provide Aduro with potential future capital if exercised within their three-year term.

The over-allotment exercise indicates strong investor demand for the original offering, suggesting positive market reception for Aduro's clean technology focus. The company, which specializes in Hydrochemolytic™ Technology to recycle waste plastics and transform heavy crude and renewable oils, plans to allocate these funds primarily toward R&D advancement and constructing its demonstration-scale plant.

This capital raise strengthens Aduro's financial position as it works to commercialize its water-based chemical recycling technology. The funds directed toward the demonstration plant represent a critical step in the company's commercialization journey, potentially accelerating their path to revenue generation. For a development-stage clean tech company, securing additional capital without returning to the market reduces dilution risk while providing operational runway to achieve technical milestones.

LONDON, Ontario, June 20, 2025 (GLOBE NEWSWIRE) -- Aduro Clean Technologies Inc. (“Aduro” or the “Company”) (Nasdaq: ADUR) (CSE: ACT) (FSE: 9D5), a clean technology company using the power of chemistry to transform lower-value feedstocks, like waste plastics, heavy bitumen, and renewable oils, into resources for the 21^st century, today announced that it issued an additional 142,180 common shares and warrants to purchase an additional 71,090 common shares, for total gross proceeds of approximately US$1.2 million, pursuant to D. Boral Capital LLC’s full exercise of its underwriter’s over-allotment option in connection with the Company’s previously announced underwritten U.S. public offering of common shares and accompanying warrants to purchase common shares (“Offering”).

The common shares issued pursuant to the over-allotment option were sold in combination with an accompanying half warrant (with each whole warrant being exercisable into one common share of the Company). Each whole warrant has an exercise price of US$10.13 per share and are exercisable immediately and will expire three years from the date of issuance.

D. Boral Capital LLC is acting as the sole book-running manager for the Offering.

Aduro intends to use the net proceeds from the offering for ongoing research and development costs, expenditures related to the construction of its “Demonstration-Scale” plant and the remainder (if any) for general corporate purposes and working capital.

The Offering was being made pursuant to an effective shelf registration statement on Form F-10, as amended (File No. 333-287475), previously filed with the U.S. Securities and Exchange Commission (“SEC”) and became effective on May 28, 2025, and the Company’s Canadian short form base shelf prospectus dated May 28, 2025 (the “Base Shelf Prospectus”). Aduro offered and sold the securities in the United States only. No securities were offered or sold to Canadian purchasers.

The Base Shelf Prospectus relating to the Offering and describing the terms thereof has been filed with the applicable securities commissions in Canada and with the SEC in the United States and is available for free by visiting the Company’s profiles on the SEDAR+ website maintained by the Canadian Securities Administrators at www.sedarplus.ca or the SEC’s website at www.sec.gov, as applicable. A final prospectus supplement with the final terms was be filed with the securities regulatory authorities in the Canadian provinces of British Columbia and Ontario and the SEC.

Copies of the final prospectus may be obtained, when available, at the SEC's website at www.sec.gov or from D. Boral Capital LLC, Attention: 590 Madison Avenue 39th Floor, New York, NY 10022, or by email at dbccapitalmarkets@dboralcapital.com, or by telephone at +1 212 970 5150.

Before you invest, you should read the prospectus and other documents the Company has filed or will file with the SEC for more complete information about the Company and the Offering. This press release shall not constitute an offer to sell, or the solicitation of an offer to buy any of the Company's securities, nor shall such securities be offered or sold in the United States absent registration or an applicable exemption from registration, nor shall there be any offer, solicitation or sale of any of the Company's securities in any state or jurisdiction in which such offers, solicitations or sales would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

About Aduro Clean Technologies

Aduro Clean Technologies is a developer of patented water-based technologies to chemically recycle waste plastics; convert heavy crude and bitumen into lighter, more valuable oil; and transform renewable oils into higher-value fuels or renewable chemicals. The Company’s Hydrochemolytic™ Technology relies on water as a critical agent in a chemistry platform that operates at relatively low temperatures and cost, a game-changing approach that converts low-value feedstocks into resources for the 21^st century.

For further information, please contact:

Abe Dyck, Head of Business Development and Investor Relations
ir@adurocleantech.com
+1 226 784 8889

KCSA Strategic Communications
Jack Perkins, Senior Vice President
aduro@kcsa.com

D. Boral Capital LLC.
dbccapitalmarkets@dboralcapital.com
+1 212 970 5150

Forward-Looking Statements

This press release contains forward-looking statements regarding the Company's current expectations. These forward-looking statements include, without limitation, references to the Company's expectations regarding anticipated use of net proceeds from the Offering. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ include, but are not limited to, risks and uncertainties related to the factors that may result in changes to the Company's anticipated use of proceeds. These and other risks and uncertainties are described more fully in the section captioned "Risk Factors" in the Company's annual information form dated May 20, 2025, which is available on SEDAR+ at www.sedarplus.ca, on EDGAR at www.sec.gov. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law, including the securities laws of the United States and Canada.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/dab6f926-3c9e-4918-96f7-891bff9a8b71

FAQ

How much did Aduro Clean Technologies (ACTHF) raise in the over-allotment option exercise?

Aduro raised approximately US$1.2 million through the issuance of 142,180 common shares and 71,090 warrants.

What are the terms of the warrants issued in Aduro's offering?

Each whole warrant has an exercise price of US$10.13 per share, is exercisable immediately, and expires three years from the date of issuance.

How will Aduro Clean Technologies use the proceeds from this offering?

The proceeds will be used for ongoing R&D costs, construction of a Demonstration-Scale plant, and general corporate purposes and working capital.

Who was the underwriter for Aduro Clean Technologies' public offering?

D. Boral Capital LLC acted as the sole book-running manager for the offering.

What stock exchanges is Aduro Clean Technologies listed on?

Aduro is listed on the Nasdaq (ADUR), Canadian Securities Exchange (ACT), and Frankfurt Stock Exchange (9D5).