ASP Isotopes Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

ASP Isotopes (NASDAQ: ASPI) has announced the pricing of its underwritten public offering of 2,395,000 shares of common stock at $6.75 per share. The offering is expected to generate gross proceeds of approximately $16.2 million. The company has granted underwriters a 30-day option to purchase up to 359,250 additional shares. The proceeds will be used for general corporate purposes, including working capital and accelerating construction of enrichment facilities in South Africa and Iceland. Canaccord Genuity is acting as sole bookrunner, with Cantor Fitzgerald & Co. as financial advisor. The offering is expected to close around November 4, 2024.

Positive

• Expected gross proceeds of $16.2 million to strengthen company's capital position
• Funds allocated for expansion of enrichment facilities in South Africa and Iceland
• Successful placement with reputable underwriters

Negative

• Potential dilution of existing shareholders' value
• Additional shares may be issued through underwriters' option, causing further dilution

Insights

Financial Analyst

This $16.2 million public offering at $6.75 per share represents significant dilution for existing shareholders, with 2,395,000 new shares being issued. The offering price reflects a substantial discount to recent trading levels, which is typical for secondary offerings but impacts current stockholders. The capital raise will strengthen the company's balance sheet and fund important growth initiatives, particularly the acceleration of enrichment facilities construction in South Africa and Iceland.

The participation of established firms like Canaccord Genuity as bookrunner and Cantor Fitzgerald as financial advisor lends credibility to the offering. However, the additional 359,250 share option granted to underwriters could create further dilution if exercised. The timing and pricing suggest urgency in raising capital, likely indicating near-term capital needs for the facility construction projects.

WASHINGTON, Nov. 01, 2024 (GLOBE NEWSWIRE) -- ASP Isotopes Inc. NASDAQ: ASPI ("ASP Isotopes” or the “Company”) today announced the pricing of the previously announced underwritten public offering of shares of its common stock. ASP Isotopes has agreed to sell an aggregate of 2,395,000 shares of its common stock at a public offering price of $6.75 per share. The gross proceeds to ASP Isotopes from the offering, before deducting underwriting discounts and commissions and estimated offering expenses payable by ASP Isotopes, and without giving effect to any exercise of the underwriters’ option to purchase additional shares, are expected to be approximately $16.2 million. In addition, ASP Isotopes has granted the underwriters a 30-day option to purchase up to 359,250 additional shares of common stock at the public offering price, less the underwriting discounts and commissions. All of the shares in the public offering are to be sold by ASP Isotopes. The offering is expected to close on or about November 4, 2024, subject to the satisfaction of customary closing conditions.

The Company currently intends to use the net proceeds from the offering for general corporate purposes, including working capital, operating expenses, and capital expenditures, including for the purpose of accelerating the construction of enrichment facilities in South Africa and Iceland.

Canaccord Genuity is acting as sole bookrunner for the offering. Cantor Fitzgerald & Co. is acting as financial advisor.

The offering is being made pursuant to a shelf registration statement on Form S-3 that was previously filed with and declared effective by the Securities and Exchange Commission (“SEC”) and a related registration statement that was filed with the SEC pursuant to Rule 462(b) under the Securities Act of 1933 (and became automatically effective upon filing). This offering is being made only by means of a prospectus and a related prospectus supplement. Copies of the preliminary prospectus supplement, dated October 31, 2024, and the accompanying prospectus, dated June 12, 2024, relating to the offering have been filed with the SEC and made available on the SEC’s website at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the offering will be available on the SEC’s website at www.sec.gov and may also be obtained, when available, by contacting Canaccord Genuity LLC, Attention: Syndication Department, 1 Post Office Square, 30th Floor, Boston, MA 02109, or by email at prospectus@cgf.com.

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

About ASP Isotopes Inc.

ASP Isotopes Inc. is a development stage advanced materials company dedicated to the development of technology and processes to produce isotopes for use in multiple industries. The Company employs proprietary technology, the Aerodynamic Separation Process (“ASP technology”). The Company’s initial focus is on producing and commercializing highly enriched isotopes for the healthcare and technology industries. The Company also plans to enrich isotopes for the nuclear energy sector using Quantum Enrichment technology that the Company is developing. The Company has isotope enrichment facilities in Pretoria, South Africa, dedicated to the enrichment of isotopes of elements with a low atomic mass (light isotopes).

Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, those regarding the expected closing of the offering and anticipated proceeds from the offering. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “hope,” “may,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Such statements are subject to numerous important factors, risks and uncertainties that may cause actual events or results to differ materially from current expectations and beliefs, including, but not limited to: risks and uncertainties related to the satisfaction of customary closing conditions related to the public offering, the intended use of net proceeds from the public offering, the impact of general economic, industry or political conditions in the United States or internationally and other important risk factors set forth under the caption “Risk Factors” in the preliminary prospectus relating to the offering, ASP Isotopes’ Annual Report on Form 10-K for the year ended December 31, 2023, and in any other subsequent filings made with the SEC by ASP Isotopes. Any forward-looking statements contained in this press release speak only as of the date hereof, and ASP Isotopes specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

Contacts

Jason Assad– Investor relations
Email: Jassad@aspisotopes.com
Telephone: 561-709-3043

FAQ

What is the price per share for ASP Isotopes (ASPI) public offering in November 2024?

ASP Isotopes priced its public offering at $6.75 per share.

How many shares is ASP Isotopes (ASPI) offering in its November 2024 public offering?

ASP Isotopes is offering 2,395,000 shares of common stock, with an additional 30-day option for underwriters to purchase up to 359,250 shares.

How much money does ASP Isotopes (ASPI) expect to raise from its November 2024 offering?

ASP Isotopes expects to raise approximately $16.2 million in gross proceeds from the offering, before deducting underwriting discounts and other expenses.

What will ASP Isotopes (ASPI) use the proceeds from its November 2024 offering for?

The proceeds will be used for general corporate purposes, including working capital, operating expenses, and accelerating construction of enrichment facilities in South Africa and Iceland.