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HESPERIA, CALIFORNIA - 5E Advanced Materials, Inc. (NASDAQ:FEAM)(ASX:5EA) has priced its underwritten public offering of common stock at $3.50 per share, the company announced Thursday. The offering price represents a significant discount to the current trading price of $4.57, though the stock has seen a steep decline of nearly 69% year-to-date according to InvestingPro data.
The development stage company, which focuses on boron and advanced boron derivative materials, is selling 2,374,481 shares of common stock with expected gross proceeds of approximately $8.31 million before deducting underwriting discounts, commissions and offering expenses.
The offering is expected to close on August 25, 2025, subject to customary closing conditions. Konik Capital Partners, LLC is serving as the lead bookrunning manager for the transaction.
According to the company’s statement, 5E plans to use the net proceeds for operating its small-scale boron facility, wellfield development and analysis, advanced planning for FEL-3 engineering, and general corporate purposes.
The offering is being made pursuant to an effective shelf registration statement on Form S-3 filed with the Securities and Exchange Commission in December 2023 and declared effective in February 2024.
5E Advanced Materials aims to become a vertically integrated supplier of boron specialty and advanced materials with lithium co-product production. The company’s resource is located in Southern California and has been designated as Critical Infrastructure by the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, according to the press release statement.
In other recent news, 5E Advanced Materials, Inc. announced the launch of an underwritten public offering of its common stock shares. The company, which is in the development stage, is offering all shares in this public offering. Konik Capital Partners, LLC has been appointed as the lead bookrunning manager for the proposed offering. Additionally, 5E Advanced Materials plans to grant underwriters a 30-day option to purchase additional shares at the public offering price. These developments mark a significant step for the company as it seeks to raise capital through this stock offering. This move follows the company’s ongoing focus on boron and advanced boron derivative materials. The public offering is expected to provide the company with additional financial resources to support its operations and growth initiatives.
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