RENO, Nev. - American Battery Technology Company (NASDAQ: ABAT), a company specializing in the manufacturing and recycling of battery materials, has announced a registered direct offering with institutional investors. The company's stock, which has shown significant volatility with a beta of 1.86, currently trades at $1.11, representing a 52% increase from its 52-week low of $0.73. The company will sell 5 million shares of common stock and warrants to purchase up to 5 million additional shares. Each share and accompanying warrant are priced at $1.00, with the warrants exercisable at $1.10 per share and valid for five years post-issuance.
The transaction is expected to generate approximately $5 million in gross proceeds before fees and other expenses. The offering is scheduled to close around December 23, 2024, contingent on standard closing conditions. A.G.P./Alliance Global Partners (NYSE:GLP) is the sole placement agent for this offering.
This financial move comes after the SEC declared a shelf registration statement effective as of June 24, 2024. The offering is outlined in a prospectus supplement to be filed with the SEC and made available on its website.
American Battery Technology Company, based in Reno, Nevada, focuses on producing and recycling critical battery metals necessary for the electric vehicle, stationary storage, and consumer electronics industries. The company emphasizes a circular supply chain for battery metals and continues to develop new technologies for battery metal production. According to InvestingPro analysis, ABAT shows promising potential with analysts forecasting a 311% revenue growth for FY2025, though the company currently operates with significant cash burn and weak profit margins. InvestingPro offers 12 additional key insights about ABAT's performance and prospects.
The press release includes forward-looking statements, such as the anticipated closing date of the offering and the intended use of proceeds, which are subject to risks and uncertainties. With a current market capitalization of $82.7 million and an overall Financial Health Score rated as "FAIR" by InvestingPro, investors should carefully consider the company's risk profile and valuation metrics before making investment decisions. These include the company's ongoing viability, market conditions, regulatory changes, and fluctuating commodity prices. The company's SEC filings, including the Annual Report on Form 10-K for the year ended June 30, 2024, provide more details on these risk factors. American Battery Technology Company has stated that it does not have any obligation to update the information presented in the press release.
This report is based on a press release statement from American Battery Technology Company.
In other recent news, American Battery Technology Co has been busy advancing its financial and operational objectives. The company secured $12 million in financing through senior secured convertible notes with High Trail Investments ON LLC and High Trail Special Situations LLC. It also formalized new compensation agreements with top executives, including the CEO, CFO, and Chief Mineral Resources Officer.
On the operational front, American Battery Technology received a $150 million grant from the U.S. Department of Energy for the construction of a second commercial-scale lithium-ion battery recycling facility. The company successfully produced lithium hydroxide with proprietary technologies and announced plans to construct a refinery capable of producing 30,000 tons of lithium hydroxide annually, supported by a $57.5 million U.S. Department of Energy grant.
Additionally, the company joined the U.S. Department of Energy's Battery Workforce Challenge, a development initiative for the electric vehicles and battery technology sectors. Analysts predict a substantial sales growth for the company, with revenue expected to surge by over 300% in fiscal year 2025.
Furthermore, American Battery Technology secured a binding purchase agreement for its recycled black mass material with a domestic customer. In personnel changes, Steven Wu has been appointed as the new Chief Operating Officer, and Scott Smith, a former Tesla (NASDAQ:TSLA) executive, has been appointed Vice President of Financial Planning and Analysis. These are recent developments at American Battery Technology Co.
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