Arq sets pricing for $25 million public stock offering

Published 20/09/2024, 13:26
Arq sets pricing for $25 million public stock offering

GREENWOOD VILLAGE, Colo. - Arq, Inc. (NASDAQ: ARQ), a producer of activated carbon and other carbon products, announced the pricing of its public offering of 4,770,000 shares at $5.25 each, anticipating gross proceeds of approximately $25 million, before underwriting discounts and expenses. The offering, expected to close on September 23, 2024, includes a 30-day option for underwriters to buy up to an additional 715,500 shares.

The company plans to use the net proceeds for general corporate purposes such as working capital, capital expenditures on granular activated carbon facilities in Louisiana and Kentucky, research and development, commercial expenditures, debt service and repayment, and potential acquisitions or investments.

Canaccord Genuity and Roth Capital Partners are serving as joint bookrunners for the offering. The shares are offered through a shelf registration statement filed with the SEC and effective as of September 4, 2024. Details regarding the offering are available on the SEC's website.

Arq is known for its environmental technology products aimed at reducing pollutants in various media and is the only vertically integrated producer of activated carbon in North America. The company's forward-looking statements indicate the anticipated use of proceeds and the expected closing date of the offering, subject to market conditions and other factors.

This news is based on a press release statement.


In other recent news, Arq, Inc., a North American producer of activated carbon, has announced a public offering of its common stock. The funds raised from this offering are intended to be used for various corporate purposes, such as working capital, research and development, debt servicing, and potential acquisitions. The offering is being managed by Canaccord Genuity and Roth Capital Partners. In parallel, Arq, Inc. has also approved its 2024 Omnibus Incentive Plan, allowing for the issuance of up to 2.5 million shares of common stock, and secured approximately $15 million in new equity financing through a private investment in public equity transaction.

On the other hand, Pinnacle West Capital Corp (NYSE:PNW)., an energy holding company, has expanded its board of directors with the addition of three new members, Ronald Butler Jr., Carol S. Eicher, and Susan T. Flanagan. These new directors bring a diverse range of experience in finance, energy, and corporate leadership, potentially offering valuable perspectives and guidance to Pinnacle West's strategy and operations.

These are among the recent developments for both companies. It's worth noting that these decisions and actions are subject to various factors and conditions, and the actual outcomes may differ from the projected plans.


InvestingPro Insights


As Arq, Inc. (NASDAQ: ARQ) proceeds with its public offering, the latest data from InvestingPro provides a snapshot of the company's financial health and market performance. Arq's market capitalization stands at $225.29 million, indicating its size within the industry. Despite a challenging fiscal landscape, with a negative P/E ratio of -49.12 reflecting its lack of profitability in the last twelve months, the company has shown a solid revenue growth of 12.87% over the same period.

Investors may also note that Arq has experienced a significant return over the last year, with a 1 Year Price Total Return of 265.87%. This impressive growth could be a signal of strong market confidence in the company's future, despite analysts not anticipating profitability for the current year. Additionally, Arq's liquid assets have surpassed its short-term obligations, which suggests financial resilience in meeting its immediate liabilities.

For those looking deeper into Arq's financials, the company's gross profit margin stands at 41.52%, indicating a strong ability to retain earnings from sales after accounting for the cost of goods sold. The InvestingPro platform lists several additional tips that could be invaluable for investors considering Arq's stock, including the company's cash burn rate and its high EBITDA valuation multiple.

For more in-depth analysis and a total of 9 InvestingPro Tips, interested parties can visit InvestingPro. This platform offers a comprehensive suite of tools and insights to help investors make informed decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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