ASP Isotopes Inc. Enters Into Warrant Inducement Transaction for Approximately $5.5 Million in Gross Proceeds
09 April 2024 - 2:49PM
ASP Isotopes Inc. NASDAQ: ASPI ("ASP Isotopes” or the “Company”),
an advanced materials company dedicated to the development of
technology and processes for the production of enriched isotopes
for use in multiple industries, today announced that it has entered
into an agreement with an institutional investor that is an
existing holder of warrants to purchase shares of common stock of
the Company for cash (the “Existing Warrants”), wherein the
investor agreed to exercise the Existing Warrants to purchase the
maximum of 3,164,557 shares of common stock at an exercise price of
$1.75 per share, resulting in gross proceeds of approximately $5.5
million, before deducting offering expenses.
In consideration for the exercise of the
Existing Warrants for cash, the exercising holder will receive new
warrants (the “New Warrants”) to purchase up to an aggregate of
1,225,000 shares of common stock in a private placement pursuant to
Section 4(a)(2) of the Securities Act of 1933, as amended (the
“Securities Act”). The Company believes the structure of this
transaction will result in substantially less fees, costs and
dilution than may occur in other capital raising transactions, such
as an underwritten offering of common stock or a private placement
priced at a discount. “We took the opportunity to do this
transaction because we view it as an attractive means of raising
additional capital; $5.5 million for 1.225 million new warrants is
effectively $4.50 per share with minimal transaction costs,” said
Paul Mann, Chairman and CEO of ASP Isotopes.
The offering is expected to close on or about
April 11, 2024. The New Warrants will be exercisable on and after
the date that is six months following the date of issuance at an
exercise price of $3.90 per share and will expire on the five year
anniversary of their initial exercise date.
The New Warrants described above were offered in
a private placement pursuant to an applicable exemption from the
registration requirements of the Securities Act and, along with the
common stock issuable upon their exercise, have not been registered
under the Securities Act, and may not be offered or sold in the
United States absent registration with the SEC or an applicable
exemption from such registration requirements. The securities were
offered only to accredited investors. The Company has agreed to
file a registration statement with the SEC covering the resale of
common shares issuable upon exercise of the New Warrants.
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 an 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 pre-commercial 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, including,
without limitation, statements relating to the completion of a
financing transaction. 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. Examples of forward-looking
statements include, among others but are not limited to, statements
we make regarding expected operating results, such as future
revenues and prospects from the potential commercialization of
isotopes, future performance under contracts, and our strategies
for product development, engaging with potential customers, market
position, and financial results. 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 our reliance on the efforts of third parties;
our ability to complete the construction and commissioning of our
enrichment plants 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; contracts,
dependence on our Intellectual Property (IP) rights, certain IP
rights of third parties; and the competitive nature of our
industry. 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. This press release includes market and industry data and
forecasts that we obtained from internal research, publicly
available information and industry publications and surveys.
Industry publications and surveys generally state that the
information contained therein has been obtained from sources
believed to be reliable. Unless otherwise noted, statements as to
our potential market position relative to other companies are
approximated and based on third-party data and internal analysis
and estimates as of the date of this press release. We have not
independently verified this information, and it could prove
inaccurate. Industry and market data could be wrong because of the
method by which sources obtained their data and because information
cannot always be verified with certainty due to the limits on the
availability and reliability of raw data, the voluntary nature of
the data-gathering process and other limitations and uncertainties.
In addition, we do not know all of the assumptions regarding
general economic conditions or growth that were used in preparing
the information and forecasts from sources cited herein. 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
relationsEmail: Jassad@aspisotopes.comTelephone:
561-709-3043
ASP Isotopes (NASDAQ:ASPI)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
ASP Isotopes (NASDAQ:ASPI)
Historical Stock Chart
Von Mai 2023 bis Mai 2024