ASP Isotopes Inc. Announces Pricing of $50 Million Underwritten Registered Direct Offering of Common Stock

Rhea-AI Summary

ASP Isotopes (NASDAQ: ASPI) has announced the pricing of a $50 million underwritten registered direct offering of common stock. The company will issue 7,518,797 shares at $6.65 per share to a single fundamental institutional investor. The offering is expected to close around June 3, 2025, with Cantor and Canaccord Genuity serving as joint book-running managers. The net proceeds will be used for general corporate purposes, including working capital, operating expenses, capital expenditures, and funding a bridge loan agreement with Renergen. The offering is made pursuant to an effective shelf registration statement on Form S-3 filed with the SEC.

Positive

• Substantial $50 million capital raise strengthens company's financial position
• Single fundamental institutional investor participation demonstrates strong investor confidence
• Successful pricing above penny stock levels at $6.65 per share

Negative

• Significant dilution for existing shareholders with issuance of 7,518,797 new shares
• Part of proceeds will be used to fund bridge loan to Renergen rather than direct company growth

Insights

Capital Markets Analyst

ASP Isotopes secured $50M from a single institutional investor, strengthening finances but diluting existing shareholders by 7.5M shares.

ASP Isotopes has priced a $50 million registered direct offering to a single institutional investor at $6.65 per share. This strategic capital raise involves issuing 7,518,797 new shares of common stock, which represents a significant dilution to existing shareholders but also a substantial cash infusion for the company.

The $6.65 per share price is noteworthy as it indicates the institutional investor's valuation assessment of ASPI. Having a single fundamental investor take the entire offering suggests strong institutional confidence in ASP Isotopes' business model and future prospects. This type of concentrated investment typically signals a deeper commitment than a broadly distributed offering.

The underwritten structure with Cantor and Canaccord Genuity as joint book-running managers adds credibility to the transaction. The net proceeds will strengthen the company's balance sheet through general corporate purposes including working capital and operational expenses. Importantly, some funds will be allocated to capital expenditures—crucial for a developing isotope company—and to fulfill obligations under the bridge loan agreement with Renergen.

This financing secures ASP Isotopes' near-term capital needs while potentially accelerating their operational timeline. However, investors should consider the dilutive effect of adding 7.5 million shares to the outstanding share count and how this might impact earnings per share going forward.

WASHINGTON, June 02, 2025 (GLOBE NEWSWIRE) -- ASP Isotopes Inc. NASDAQ: ASPI ("ASP Isotopes” or the “Company”), today announced the pricing of an underwritten registered direct offering of 7,518,797 shares of its common stock at a price of $6.65 per share to a single fundamental institutional investor. The gross proceeds from the offering, before deducting underwriting discounts and commissions and offering expenses, are expected to be approximately $50.0 million. The offering is expected to close on or about June 3, 2025, subject to the satisfaction of customary closing conditions.

Cantor and Canaccord Genuity acted as joint book-running managers for the offering.

The net proceeds of this offering are expected to be used for general corporate purposes, including working capital, operating expenses, and capital expenditures, as well as funding the disbursement to Renergen under our bridge loan agreement with Renergen.

A shelf registration statement on Form S-3 (File No. 333-286860) relating to the offering of shares of common stock described above was declared effective by the Securities and Exchange Commission (“SEC”) on May 30, 2025. The offering is being made only by means of a prospectus supplement and the accompanying prospectus that form a part of the registration statement. A final prospectus supplement relating to and describing the terms of the offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. When available, copies of the final prospectus supplement and accompanying prospectus relating to these securities may also be obtained by sending a request to: Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, New York, New York 10022, or by email at prospectus@cantor.com; or 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 does not constitute an offer to sell or a solicitation of an offer to buy any of these securities, nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale is not permitted.

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).

There is a growing demand for isotopes such as Silicon-28, which will enable quantum computing, and Molybdenum-100, Molybdenum-98, Zinc-68, Ytterbium-176, and Nickel-64 for new, emerging healthcare applications, as well as Chlorine-37, Lithium-6, and Uranium-235 for green energy applications. The ASP Technology (Aerodynamic Separation Process) is ideal for enriching low and heavy atomic mass molecules. For more information, please visit www.aspisotopes.com.

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. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Forward-looking statements can be identified by words such as “believes,” “plans,” “anticipates,” “expects,” “estimates,” “projects,” “will,” “may,” “might,” and words of a similar nature. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict, many of which are outside our control. Our actual results, financial condition, and events may differ materially from those indicated in the forward-looking statements based upon a number of factors. Forward-looking statements are not a guarantee of future performance or developments. You are strongly cautioned that reliance on any forward-looking statements involves known and unknown risks and uncertainties. Therefore, you should not rely on any of these forward-looking statements. There are many important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements, including: the failure to obtain necessary regulatory and shareholder approvals for the proposed acquisition of Renergen; disruption from the proposed acquisition of Renergen making it more difficult to maintain business and operational relationships; significant transaction costs and unknown liabilities related to the proposed acquisition of Renergen; litigation or regulatory actions related to the proposed acquisition of Renergen; the outcomes of various strategies and projects undertaken by the Company; the potential impact of laws or government regulations or policies in South Africa, the United Kingdom or elsewhere; our reliance on the efforts of third parties; our ability to complete the proposed the construction and commissioning of our enrichment plant(s) or to commercialize isotopes using the ASP technology or the Quantum Enrichment Process; our ability to obtain regulatory approvals for the production and distribution of isotopes; the financial terms of any current and future commercial arrangements; our ability to complete certain transactions and realize anticipated benefits from acquisitions and contracts; dependence on our Intellectual Property (IP) rights, certain IP rights of third parties; the competitive nature of our industry; and the factors disclosed in Part I, Item 1A. “Risk Factors” of the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and any amendments thereto and in the company’s subsequent reports and filings with the U.S. Securities and Exchange Commission. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise. No information in this press release should be interpreted as an indication of future success, revenues, results of operation, or stock price. All forward-looking statements herein are qualified by reference to the cautionary statements set forth herein and should not be relied upon.

Contacts

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

FAQ

How much money is ASP Isotopes (ASPI) raising in their June 2025 offering?

ASP Isotopes is raising $50 million in gross proceeds through an underwritten registered direct offering of common stock.

What is the price per share for ASPI's June 2025 stock offering?

The offering is priced at $6.65 per share.

How many new shares is ASP Isotopes (ASPI) issuing in the June 2025 offering?

ASP Isotopes is issuing 7,518,797 shares of common stock.

What will ASP Isotopes use the proceeds from the June 2025 offering for?

The proceeds will be used for general corporate purposes, including working capital, operating expenses, capital expenditures, and funding a bridge loan agreement with Renergen.

Who are the underwriters for ASPI's June 2025 stock offering?

Cantor and Canaccord Genuity are acting as joint book-running managers for the offering.