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GREENWICH, Conn. - Stardust Power Inc. (NASDAQ:SDST) announced Thursday that underwriters have exercised their option to purchase an additional 1.1 million shares of common stock, generating approximately $220,000 in additional gross proceeds. The micro-cap company, currently valued at $16.21 million with shares trading at $0.20, has seen its stock decline 94% year-to-date, according to InvestingPro data.
The exercise of this over-allotment option has increased the total gross proceeds from the company’s recent public offering to approximately $4.52 million before deducting underwriting fees and other offering expenses, according to a press release statement. InvestingPro analysis indicates the company faces financial challenges with a weak current ratio of 0.11 and short-term obligations exceeding liquid assets, making this capital raise crucial for operations.
The additional funds will support the completion of Stardust Power’s Definitive Feasibility Study for its planned lithium processing facility in Muskogee, Oklahoma. This study represents a critical step toward reaching a Final Investment Decision for the project. For deeper insights into Stardust Power’s financial health and growth prospects, investors can access comprehensive analysis and 13 additional ProTips through InvestingPro’s detailed research reports.
The over-allotment option closed on June 25, subject to customary closing conditions.
Aegis Capital Corp. served as the sole book-running manager for the offering. The public offering was made through a registration statement on Form S-1 that was declared effective by the Securities and Exchange Commission on June 16.
Stardust Power is developing a lithium processing facility in Oklahoma with anticipated capacity to produce up to 50,000 metric tons per annum of battery-grade lithium products. The company trades on the Nasdaq under the ticker symbol SDST.
The company noted in its release that the proceeds will help advance detailed engineering, refine capital estimates, and define project scope as it moves toward construction financing.
In other recent news, Stardust Power Inc. reported a significant increase in its net loss for the first quarter of 2025, with a loss per share rising to 7 cents from 4 cents the previous year. The company’s net loss widened by $2.4 million year-over-year, totaling $3.8 million, reflecting increased operational expenses as it advances its lithium refinery project. Despite this, Stardust Power saw an increase in its cash reserves to $1.6 million, up from $900,000 in December 2024, indicating strong liquidity. Additionally, the company announced a public offering priced to generate approximately $4.3 million in gross proceeds, with Aegis Capital Corp. managing the offering.
Stardust Power also signed a Memorandum of Understanding with Ohio University to collaborate on advanced lithium extraction and refining technologies, which could support its lithium processing facility in Muskogee, Oklahoma. The company is targeting a Final Investment Decision for its lithium refinery by the end of the year and is actively engaging with authorities for support and project financing. Furthermore, Stardust Power maintains a debt-free balance sheet and continues to align its operations with federal priorities for clean energy and supply chain security.
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