5E Advanced Materials Announces Pricing of $8.31 Million Public Offering of Common Stock

Rhea-AI Summary

5E Advanced Materials (NASDAQ:FEAM) has announced the pricing of its public offering of 2,374,481 shares of common stock at $3.50 per share, expecting to raise approximately $8.31 million in gross proceeds.

The offering, led by Konik Capital Partners as the bookrunning manager, is expected to close on August 25, 2025. The company plans to use the proceeds for operating its small-scale boron facility (SSBF), wellfield development, advanced FEL-3 engineering planning, and general corporate purposes.

The offering is being conducted through an effective shelf registration statement on Form S-3 filed with the SEC.

Positive

• Secured $8.31 million in additional funding through public offering
• Proceeds will support key operational initiatives including SSBF and wellfield development
• Offering conducted through existing shelf registration, streamlining the process

Negative

• Potential dilution for existing shareholders with 2.37 million new shares
• Stock offering priced at $3.50 per share indicates current market conditions

Insights

Financial Analyst

5E is raising $8.31M through stock offering at $3.50/share, diluting existing shareholders while securing capital for operations.

5E Advanced Materials has priced its underwritten public offering of 2,374,481 shares of common stock at $3.50 per share, expecting to generate gross proceeds of approximately $8.31 million. This capital raise appears to be a strategic move to fund critical operations and development initiatives, including their small-scale boron facility operations, wellfield development, and advanced engineering planning.

The $3.50 per share pricing is particularly notable as it provides insight into how the market currently values the company. This offering will result in dilution for existing shareholders as new shares enter the market. The company has engaged Konik Capital Partners as the lead bookrunning manager, with the offering expected to close by August 25, 2025, subject to customary conditions.

The offering is being conducted through an existing shelf registration that became effective in February 2024, indicating the company had anticipated this capital need. For a development-stage company like 5E, which is working toward becoming a vertically integrated supplier of specialty boron materials, securing adequate funding for operational continuity is crucial. The allocation of proceeds toward the small-scale boron facility suggests the company is prioritizing building its production capabilities, which aligns with its stated strategic focus of establishing itself in the specialty boron market.

HESPERIA, CALIFORNIA / ACCESS Newswire / August 21, 2025 / 5E Advanced Materials, Inc. ("5E" or the "Company") (Nasdaq:FEAM)(ASX:5EA), a development stage company focused on becoming a vertically integrated global leader and supplier of specialty boron and advanced boron derivative materials, today announced the pricing of its underwritten public offering of common stock in the United States (the "Offering").

In the Offering, 5E is selling 2,374,481 shares of common stock at a public offering price of $3.50 per share. All shares of common stock to be sold in the Offering are being offered by 5E. The gross proceeds to 5E from the Offering are expected to be approximately $8.31 million, before deducting underwriting discounts and commissions and estimated Offering expenses payable by 5E. Subject to the satisfaction of customary conditions, the Offering is expected to close on August 25, 2025.

Konik Capital Partners, LLC is acting as lead bookrunning manager for the Offering.

5E currently intends to use the net proceeds from the Offering, together with its existing cash, cash equivalents and marketable securities, for the operation of its small-scale boron facility (SSBF), wellfield development and analysis, advanced planning for FEL-3 engineering, and general corporate purposes.

The Offering is being made pursuant to an effective shelf registration statement on Form S-3 that was filed with the Securities and Exchange Commission (the "SEC") on December 20, 2023, as amended and declared effective February 27, 2024. A final prospectus supplement and accompanying prospectus relating to and describing the final terms of the Offering will be filed with the SEC and will be available on the SEC's website located at http://www.sec.gov or may be obtained, when available, from: Konik Capital Partners, LLC, 7 World Trade Center, 46th Floor, New York, NY 10007, or e-mail at capmarkets@konikcapitalpartners.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, 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 5E Advanced Materials, Inc.

5E Advanced Materials, Inc. (Nasdaq: FEAM)(ASX:5EA) is focused on becoming a vertically integrated global leader and supplier of boron specialty and advanced materials, complemented by lithium co-product production. The Company's mission is to become a supplier of these critical materials to industries addressing global decarbonization, food and domestic security. Boron and lithium products will target applications in the fields of electric transportation, clean energy infrastructure, such as solar and wind power, fertilizers, and domestic security. The business strategy and objectives are to develop capabilities ranging from upstream extraction and product sales of boric acid, lithium carbonate and potentially other co-products, to downstream boron advanced material processing and development. The business is based on our large domestic boron and lithium resource, which is located in Southern California and designated as Critical Infrastructure by the Department of Homeland Security's Cybersecurity and Infrastructure Security Agency.

Forward Looking Statements

Statements in this press release may contain "forward-looking statements" that are subject to substantial risks and uncertainties. Forward-looking statements contained in this press release may be identified by the use of words such as "may," "will," "should," "expect," "plan," "anticipate," "could," "intend," "target," "project," "contemplate," "believe," "estimate," "predict," "potential" or "continue" or the negative of these terms or other similar expressions, and include, but are not limited to, statements regarding the completion and timing of the Offering. Any forward-looking statements are based on 5E's current expectations, forecasts, and assumptions and are subject to a number of risks and uncertainties that could cause actual outcomes and results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties related to market conditions and satisfaction of customary closing conditions related to the Offering. For a discussion of other risks and uncertainties, and other important factors, any of which could cause our actual results to differ from those contained in the forward-looking statements, see the section entitled "Risk Factors" in 5E's most recent Annual Report on Form 10-K, its other reports filed with the SEC, as well as in the preliminary prospectus supplement and final prospectus supplement related to the Offering. Forward-looking statements contained in this announcement are based on information available to 5E as of the date hereof and are made only as of the date of this release. 5E undertakes no obligation to update such information except as required under applicable law. These forward-looking statements should not be relied upon as representing 5E's views as of any date subsequent to the date of this press release. In light of the foregoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of 5E.

For further information contact:

Michael MacMillan or Paola Ashton PRA
Communications
team@pracommunications.com
Ph: +1 (604) 681-1407

SOURCE: 5E Advanced Materials, Inc.

View the original press release on ACCESS Newswire

FAQ

How much money is FEAM raising in its August 2025 public offering?

5E Advanced Materials is raising $8.31 million in gross proceeds through a public offering of 2,374,481 shares priced at $3.50 per share.

What will FEAM use the proceeds from the 2025 stock offering for?

The proceeds will be used for operating the small-scale boron facility (SSBF), wellfield development, advanced FEL-3 engineering planning, and general corporate purposes.

When will FEAM's August 2025 public offering close?

The offering is expected to close on August 25, 2025, subject to customary closing conditions.

Who is the lead bookrunning manager for FEAM's 2025 stock offering?

Konik Capital Partners, LLC is acting as the lead bookrunning manager for the offering.

How many new shares is FEAM offering in August 2025?

5E Advanced Materials is offering 2,374,481 shares of common stock at a public offering price of $3.50 per share.