Arq announces public offering of common stock

GREENWOOD VILLAGE, Colo. - Arq, Inc. (NASDAQ: ARQ), a North American producer of activated carbon and other carbon-based products, has launched an underwritten public offering of its common stock, the company announced today. The offering includes a 30-day option for underwriters to purchase an additional 15% of shares. While the offering's completion and terms are subject to market conditions, the proceeds are earmarked for general corporate purposes.

These purposes include working capital, capital expenditures—particularly the ongoing construction of granular activated carbon facilities at Arq’s locations in Louisiana and Kentucky—research and development, commercial expenses, debt servicing, and potential acquisitions or investments in new technologies and businesses.

Canaccord Genuity and Roth Capital Partners are managing the bookrunning for this offering. Arq had previously filed a shelf registration statement, which became effective on September 4, 2024. The offering is made through a prospectus and prospectus supplement, which are available on the SEC’s website.

Arq stands out as the only vertically integrated producer of activated carbon in North America, focusing on innovative solutions that contribute to environmental sustainability by removing pollutants from various elements. The company's forward-looking statements in the press release indicate its intentions for the offering but also acknowledge the risks and uncertainties that could affect the actual outcome, including market conditions and the ability to meet the offering's closing conditions.

This news is based on a press release statement from Arq, Inc., and no offer to sell or solicitation of an offer to buy these securities will be valid in any jurisdiction where it would be unlawful. The company's forward-looking statements are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those projected.

In other recent news, Pinnacle West Capital Corp (NYSE:PNW). has expanded its board of directors with the addition of three new members, Ronald Butler Jr., Carol S. Eicher, and Susan T. Flanagan. The appointments have increased the board size from nine to twelve members, with eleven now classified as independent. The new directors bring a diverse range of experience in finance, energy, and corporate leadership. This is a significant development for Pinnacle West, which operates primarily through its principal subsidiary Arizona Public Service.

In other recent developments, Arq, Inc. has approved its 2024 Omnibus Incentive Plan, allowing for the issuance of up to 2.5 million shares of common stock. This move was ratified during the company's Annual Meeting of Stockholders, where all eight nominated directors were elected to the Board of Directors. Additionally, Arq, Inc. has secured approximately $15 million in new equity financing through a private investment in public equity transaction, indicating strategic moves to strengthen its financial position and operational capabilities.

InvestingPro Insights

As Arq, Inc. (NASDAQ: ARQ) announces its public offering of common stock, potential investors and current shareholders are evaluating the company's financial health and future profitability. According to InvestingPro data, Arq's market capitalization stands at $224.2 million, reflecting the market's current valuation of the company.

InvestingPro metrics show that Arq has experienced a significant revenue growth rate of 12.87% over the last twelve months as of Q2 2024. This upward trend is bolstered by a more recent quarterly revenue growth of 24.26%, demonstrating the company's capacity to increase its sales in the short term. Despite these encouraging signs, the company's P/E ratio is negative at -49.12, indicating that it is not currently profitable and, as per one of the InvestingPro Tips, analysts do not expect Arq to be profitable this year. This aligns with the company's stated use of the offering's proceeds, which includes working capital and capital expenditures, potentially to support its path towards profitability.

Investors might also note that Arq's gross profit margin is at a solid 41.52%, suggesting that the company is effective in controlling the cost of goods sold relative to sales. However, another InvestingPro Tip points out that Arq is trading at a high EBITDA valuation multiple, which could signal that the stock is relatively expensive compared to its earnings before interest, taxes, depreciation, and amortization.

For those looking to delve deeper into Arq's financials and forecasts, InvestingPro offers a comprehensive set of tools and additional tips. As of now, there are six more InvestingPro Tips available for Arq, Inc., providing further insight into the company's financial performance and market position. These tips can be accessed by visiting the InvestingPro platform at https://www.investing.com/pro/ARQ.

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