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GREENWICH, CONNECTICUT - Stardust Power Inc. (NASDAQ:SDST) announced Tuesday the pricing of its underwritten public offering expected to generate approximately $4.3 million in gross proceeds before deducting fees and expenses. The offering comes as the company, currently valued at $23.4 million, faces significant financial challenges. According to InvestingPro data, the stock has declined over 96% in the past year.
The offering consists of 21.5 million shares of common stock priced at $0.20 per share, according to a company press release. Aegis Capital Corp. is serving as the sole book-running manager and has been granted a 45-day option to purchase additional shares of up to 15% of the offering to cover potential over-allotments. InvestingPro analysis suggests the stock is currently undervalued, with analyst price targets ranging from $1.70 to $6.00 per share.
The transaction is expected to close on or about June 18, 2025, subject to customary closing conditions. Stardust Power indicated it plans to use the net proceeds for general corporate purposes and working capital. This capital raise comes at a critical time, as InvestingPro data shows the company’s current ratio of 0.11 indicates significant liquidity challenges, with short-term obligations exceeding liquid assets.
The offering follows the company’s registration statement on Form S-1 being declared effective by the Securities and Exchange Commission on Monday.
Stardust Power describes itself as a developer of battery-grade lithium products with plans to build a lithium processing facility in Muskogee, Oklahoma. The facility is anticipated to have production capacity of up to 50,000 metric tons per annum of battery-grade lithium.
Thompson Hine LLP is acting as legal counsel to Stardust Power for the offering, while Kaufman & Canoles, P.C. represents Aegis Capital Corp.
The company noted that the offering is being made only through a prospectus, which will be filed with the SEC and available on the commission’s website.
In other recent news, Stardust Power Inc. has reported a significant widening of its net loss for the first quarter of 2025. The company experienced a net loss of $3.8 million, an increase of $2.4 million from the previous year, with a loss per share rising from 4 cents to 7 cents. Despite these financial challenges, Stardust Power has increased its cash reserves to $1.6 million from $900,000 in December 2024, maintaining a debt-free balance sheet. Additionally, the company is advancing its lithium refinery project in Muskogee, Oklahoma, with a focus on securing necessary permits and financing.
The company has signed a Memorandum of Understanding with Ohio University to explore advanced lithium extraction technologies, which may support its refinery development. This collaboration could potentially secure lithium brine feedstock for the facility. Stardust Power is also engaging with federal and state authorities for project support and financing discussions with MUFG. Furthermore, the company aims to align with national priorities for clean energy and domestic supply chain security, positioning itself strategically in the lithium market.
Analyst firms like B. Riley Securities and Alliance Global Partners have engaged with Stardust Power, showing interest in the company’s progress and future plans. The company’s focus remains on becoming a key player in the domestic lithium supply chain amidst evolving market conditions.
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