ASP Isotopes Inc. (NASDAQ:ASPI) (“ASPI”, the “Company”, “us”, “we” or “our”), an advanced materials company dedicated to the development of technology and processes designed to produce isotopes for use in multiple industries, today announced that it has entered into a definitive securities purchase agreement with certain institutional and other accredited investors, under which the Company agreed to issue an aggregate of approximately 9 million shares of its common stock at a purchase price of $0.9105 per share in a private placement transaction. The oversubscribed private placement was priced “At the Market.” The gross proceeds to the Company from the private placement are expected to be approximately $8 million before deducting the offering expenses payable by the Company. The closing of the private placement is subject to the satisfaction of customary closing conditions.
Ocean Wall Limited is acting as the sole placement agent for the private placement.
The Company is delighted to announce that well-known Uranium and Critical Resource investor Tees River, through its Tees River Critical Resources Fund, intends to add to its existing equity stake by taking a significant percentage of the placement. As a result, at the closing of the transaction, Tees River Critical Resources Fund is expected to have a total ownership of approximately 14% of the issued and outstanding shares of common stock. In addition, multiple members of the Company’s board of directors are participating in the transaction.
Paul Mann, Chairman and CEO of ASP Isotopes Inc., said, “We are delighted to welcome the Tees River Fund as a strategic institutional shareholder in this placement. We are also excited that several large hedge funds have taken stakes, and we see this interest from institutions and funds as extremely positive. With this additional capital, we believe that we have the required resources to achieve first revenues while also being able to accelerate some high ROI projects, including the initial phases of HALEU enrichment in our newly formed subsidiary, Quantum Leap Energy (QLE)“
Nick Lawson, CEO of Ocean Wall, commented, “For over four years, Ocean Wall has believed uranium to be the most misunderstood yet strongest investment opportunity for the next decade. We have written extensively on the severe supply issues that every part of the nuclear fuel chain faces right now and, in particular, the urgent need for Western enrichment supply capability. Via this PIPE deal we are delighted to be supporting ASP Isotopes, a marquee company in this sector, whom Ocean Wall believe can be the future of HALEU supply to the West and remove the reliance on Russian enriched fuel.”
The Company intends to use the net proceeds from this placement for working capital and other general corporate purposes. With additional capital the Company is expected to have the balance sheet strength required to not only reach first revenue generation but also accelerate several high return-on-investment growth projects.
“At the Market” or the “Minimum Price” as defined under the Listing Rule 5635(d) of The Nasdaq Stock Market LLC, is the lower of: (1) the closing price (as reflected on Nasdaq.com) immediately preceding the signing of the binding agreement and (2) the average closing price of the common stock (as reflected on Nasdaq.com) for the five trading days immediately preceding the signing of the binding agreement).
The securities to be issued in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state securities laws, and may not be reoffered or resold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.
Under an agreement with the investors, the Company has agreed to file a registration statement with the Securities and Exchange Commission (“SEC”) covering the resale of the securities to be issued to the investors in the private placement within 30 days after the date of the definitive agreement.
