ClearSign Technologies Corporation Announces Closing of $9.3 Million Public Offering and Concurrent Private Placement of Common Stock and Warrants

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ClearSign Technologies completed a $9.3 million public offering and private placement of common stock and warrants. The public offering included 4,620,760 shares at a price of $0.91 per share with accompanying warrants. Concurrently, a private placement involved 2,249,763 shares, pre-funded warrants, and redeemable warrants. The gross proceeds were approximately $9.3 million, with intentions to utilize the funds for various purposes including working capital, research and development, marketing, and general corporate needs.

Financial Analyst

The recent financial maneuver by ClearSign Technologies Corporation, which includes both a public offering and a private placement, results in a significant infusion of capital estimated at around $9.3 million>. This capital raises a few critical points for investors to ponder. Firstly, the offering price of $0.91> per share coupled with the nominal price of the warrants suggests a strategy to attract investment without setting a high barrier to entry. The funds are earmarked for diverse corporate activities such as working capital and research and development, indicating an aggressive stance toward expanding operations and improving product offerings. However, investors should be wary of potential dilution of their shares due to the influx of new stock and warrants. This event could lead to short-term downward pressure on the stock price as the market absorbs the additional shares. In contrast, the long-term outlook could benefit if the company successfully allocates these funds to drive growth and innovation.

Market Research Analyst

ClearSign's recent capital raise through a combined public and private offering highlights the current investor confidence in the company's potential, particularly in the industrial combustion and sensing technologies sector. These resources may bolster their competitive standing and accelerate their advancement in energy efficiency and emission reduction technologies. The public offering's terms, notably the redeemable warrants with immediate exercise and an expiration of five years, suggest a strategic incentive for investors to commit for a longer term, aligning with the company's growth trajectory. For retail investors, the key takeaway is to monitor how effectively ClearSign deploys this capital to materialize its R&D projects into marketable innovations that can capture a significant market share in the environmentally conscious tech sector.

TULSA, Okla., April 23, 2024 /PRNewswire/ -- ClearSign Technologies Corporation (Nasdaq: CLIR) ("ClearSign" or the "Company"), an emerging leader in industrial combustion and sensing technologies that improve energy, operational efficiency and safety while dramatically reducing emissions, today announced the closing of an underwritten public offering of 4,620,760 shares of its common stock and redeemable warrants to purchase up to an aggregate of 4,620,760 shares of its common stock at a public offering price of $0.91 per share and $0.01 per accompanying warrant. The warrants have an exercise price of $1.05 per share, are exercisable immediately upon issuance and redeemable upon certain conditions and will expire five years following the date of issuance.

In a private placement completed concurrently with the public offering, ClearSign issued to an accredited investor an aggregate of 2,249,763 shares of common stock, pre-funded warrants to purchase up to 3,155,642 shares of common stock and redeemable warrants to purchase up to 8,108,106 shares of common stock. The offering prices in the private placement were $0.91 per share and $0.01 per redeemable warrants, or $0.9099 per pre-funded warrant and $0.01 per redeemable warrants, as applicable. The pre-funded warrants issued in the private placement are exercisable immediately at a nominal exercise price of $0.0001. The redeemable warrants issued in the private placement will be exercisable at an exercise price of $1.05 per share, will be exercisable beginning six months after issuance, redeemable upon certain conditions and expire five years from the date of issuance.

Public Ventures, LLC acted as the sole book-running manager for the public offering and as a placement agent for the private placement.

Gross proceeds from the public and private offering were approximately $9.3 million, excluding underwriting and placement agent discounts and commissions and other offering-related expenses.

ClearSign intends to use the net proceeds from the offerings for working capital, research and development, marketing and sales, and general corporate purposes.

The securities in the public offering were offered pursuant to a prospectus supplement and an accompanying base prospectus forming part of a shelf registration statement on Form S-3 (File No. 333-265967), which was previously filed with the Securities and Exchange Commission ("SEC") and became effective on August 12, 2022. A final prospectus supplement and accompanying base prospectus relating to the public offering was filed with the SEC and is available on the SEC's website at www.sec.gov. Copies of the final prospectus supplement and the accompanying base prospectus may be obtained for free by contacting Public Ventures, LLC, 14135 Midway Rd, Suite G-150, Addison, TX, 75001, by email at info@publicventures.com or by telephone at (945) 262-9010.

The private placement was conducted pursuant to the exemption from registration provided in Section 4(a)(2) under the Securities Act of 1933 and/or Rule 506(b) promulgated thereunder.

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

About ClearSign Technologies Corporation

ClearSign Technologies Corporation designs and develops products and technologies for the purpose of improving key performance characteristics of industrial and commercial systems, including operational performance, energy efficiency, emission reduction, safety and overall cost-effectiveness. Our patented technologies, embedded in established OEM products as ClearSign Core^™ and ClearSign Eye^™ and other sensing configurations, enhance the performance of combustion systems and fuel safety systems in a broad range of markets, including the energy (upstream oil production and down-stream refining), commercial/industrial boiler, chemical, petrochemical, transport and power industries. For more information, please visit www.clearsign.com.

Cautionary note on forward-looking statements

All statements in this press release that are not based on historical fact are "forward-looking statements." You can find many (but not all) of these statements by looking for words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "would," "should," "could," "may," "will" or other similar expressions. While management has based any forward-looking statements included in this press release on its current expectations on the Company's strategy, plans, intentions, performance, or future occurrences or results, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of the Company's control, that could cause actual results to materially differ from such statements. Such risks, uncertainties and other factors include, but are not limited to: general business and economic conditions, the ability to successfully complete installations of the Company's products, whether the letter of intent sent to California Boiler results in purchase orders from the customer, whether changes in greenhouse gas emission control applicable federal and state laws and regulations, the performance of the Company's management and employees, the ability to obtain financing, competition, whether ClearSign's technology will be accepted and adopted and other factors identified in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission and available at www.sec.gov and other factors that are detailed in the Company's periodic and current reports available for review at www.sec.gov. Furthermore, the Company operates in a competitive environment where new and unanticipated risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. The Company disclaims any intention to, and, except as may be required by law, undertake no obligation to, update or revise forward-looking statements to reflect events or circumstances that subsequently occur or of which we hereafter become aware.

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SOURCE ClearSign Technologies Corporation

FAQ

What was the public offering price per share for ClearSign Technologies (CLIR)?

The public offering price per share for ClearSign Technologies (CLIR) was $0.91.

How many shares were included in the public offering for ClearSign Technologies (CLIR)?

The public offering for ClearSign Technologies (CLIR) included 4,620,760 shares.

What were the gross proceeds from the public and private offering for ClearSign Technologies (CLIR)?

The gross proceeds from the public and private offering for ClearSign Technologies (CLIR) were approximately $9.3 million.

What are the intended uses of the net proceeds from the offerings for ClearSign Technologies (CLIR)?

ClearSign Technologies (CLIR) intends to use the net proceeds for working capital, research and development, marketing and sales, and general corporate purposes.

Who acted as the sole book-running manager for the public offering of ClearSign Technologies (CLIR)?

Public Ventures, acted as the sole book-running manager for the public offering of ClearSign Technologies (CLIR).