Craig Shesky, the Chief Financial Officer of TMC the metals Co Inc. (NASDAQ:TMC), recently sold 47,523 common shares of the company. The shares were sold at an average price of approximately $0.8456 each, totaling $40,185. Following this transaction, Shesky holds 977,844 shares directly.
The sale was executed to cover tax withholding obligations related to the vesting of restricted stock units granted to Shesky, as noted in the company's filing. This transaction was an automatic "sell to cover" and not a discretionary sale. The shares were sold in multiple transactions at prices ranging from $0.84 to $0.87 per share.
In other recent news, The Metals Company (TMC) has reported its Q3 results, indicating a net loss of $20.5 million. The company has announced a strategic shift towards a services business, aiming to reduce operating expenses to below $5 million per quarter. TMC is also preparing to submit its exploitation contract application to the International Seabed Authority (ISA) by June 2025.
The company has recently launched a registered direct offering to bolster its financial resilience, supported by major institutional shareholders. TMC is also conducting a pre-feasibility study for a capital-light strategy, with significant nodule processing trials expected in 2025. The company is delaying capital expenditures on production until regulations become more certain.
Recent developments suggest a favorable U.S. political climate for TMC, with expected support for deep-sea mining following recent elections. The company is optimistic about securing services contracts by the next earnings call, leveraging 22 successful offshore campaigns. Despite current challenges, TMC continues to position itself for future growth in the sector.
InvestingPro Insights
The recent insider sale by TMC's CFO Craig Shesky occurs against a backdrop of challenging financial metrics for the company. According to InvestingPro data, TMC's market capitalization stands at $289.47 million, with the stock trading near its 52-week low. This aligns with an InvestingPro Tip indicating that the stock has taken a significant hit over the last six months, with a price total return of -45.4% during that period.
InvestingPro Tips also reveal that TMC is quickly burning through cash and suffers from weak gross profit margins. These factors may contribute to the company's financial struggles, as evidenced by the adjusted operating income of -$98.2 million for the last twelve months as of Q3 2023. The company's inability to generate profits is further highlighted by its negative P/E ratio of -3.06 and the fact that analysts do not anticipate profitability this year.
Despite these challenges, it's worth noting that TMC operates with a moderate level of debt, which could provide some financial flexibility. However, the company's short-term obligations exceed its liquid assets, potentially putting pressure on its financial position.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for TMC, providing a deeper understanding of the company's financial health and market position.
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