Icon Energy sets price for public offering of units

Published 23/01/2025, 15:26
Icon Energy sets price for public offering of units

ATHENS - Icon (NASDAQ:ICLR) Energy Corp. (NASDAQ:ICON), a global dry bulk shipping service provider, has announced the pricing of its public offering of over 9 million units at $1.31 each. According to InvestingPro data, this pricing comes as the stock trades near its 52-week low of $1.30, having declined over 41% year-to-date. The offering includes common shares or warrants to purchase common shares and warrants for additional shares at an initial price of $2.62 each. The warrants are immediately exercisable and will expire three years from the issue date.

The company has set conditions for potential adjustments to the exercise price of the warrants after the offering closes, which is expected on January 24, 2025. The adjustments are based on the closing price of Icon's common shares on the Nasdaq Capital Market and could lower the price to 60%, 40%, and 30% on specific days following the offering. Additionally, the number of shares under the warrants may increase proportionally.

The warrants offer an alternative cashless exercise option, allowing holders to exchange each warrant for one and a half common shares. Although the common shares (or pre-funded warrants) and accompanying warrants are being sold together, they will be issued separately and are immediately separable upon issuance.

Icon Energy anticipates gross proceeds of approximately $12 million before fees and expenses. The net proceeds are intended for general corporate purposes, including working capital needs, debt repayment, and fleet expansion. InvestingPro analysis reveals the company operates with a debt-to-equity ratio of 1.28 and a current ratio of 0.63, highlighting the importance of this capital raise for strengthening its financial position. Maxim Group LLC is acting as the sole placement agent for the offering.

This press release does not constitute an offer to sell or a solicitation of an offer to buy securities. The offering is made only through a prospectus that is part of the registration statement, which has been declared effective by the U.S. Securities and Exchange Commission (SEC).

Icon Energy, headquartered in Athens, Greece, operates its fleet across international waters, transporting dry bulk cargo. Its common shares are traded on the Nasdaq Capital Market under the ticker ICON. InvestingPro analysis indicates the stock is currently undervalued, with a notable dividend yield of 25.95%. Subscribers can access 15+ additional ProTips and comprehensive financial metrics to better understand the company's position in the market.

This article is based on a press release statement from Icon Energy Corp. and does not constitute financial advice.

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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