Chris Gannon, President and CEO of 374Water Inc. (NASDAQ:SCWO), has recently acquired a significant amount of the company's common stock, according to a recent SEC filing. On November 18, Gannon purchased 120,000 shares of 374Water's common stock at a price of $1.25 per share, totaling $150,000. This acquisition reflects Gannon's direct ownership of the shares.
In addition to the stock purchase, Gannon also acquired warrants, which provide the right to buy an additional 180,000 shares of common stock. These warrants were acquired at a conversion price of $1.125 per share, with an expiration date set for November 17, 2029. Following these transactions, Gannon's holdings in 374Water are poised to increase significantly, indicating a strong commitment to the company's future.
In other recent news, 374Water Inc. has secured approximately $12.2 million through a registered direct offering involving the sale of shares and warrants. The offering, facilitated by D. Boral (OTC:BOALY) Capital LLC, will sell 9,783,496 shares of common stock along with warrants for an additional 14,675,244 shares. The warrants, priced at $1.125 per share, are exercisable immediately and will remain valid for five years. The company expects the gross proceeds before fees and expenses to be around the $12.2 million mark.
In other developments, 374Water has initiated operations of its AirSCWO technology at the Iron Bridge Regional Water Reclamation Facility in Orlando. This significant step in commercial biosolids processing aligns with the city's sustainability goals. The Florida Department of Environmental Protection supported the installation with a grant under the Bilateral Infrastructure Law emerging contaminant funding.
CEO Chris Gannon highlighted the operational success in Orlando as crucial for showcasing the technology's capacity to manage municipal, federal, and industrial organic waste streams at scale. The company also anticipates additional commitments across the United States, including a deployment to Orange County Sanitation in 2025. These recent developments are based on press release statements from 374Water Inc.
InvestingPro Insights
Chris Gannon's recent purchase of 374Water Inc. (NASDAQ:SCWO) shares aligns with several key insights from InvestingPro. The CEO's significant investment comes at a time when the stock has taken a substantial hit, with InvestingPro data showing a 27.96% decline in the past week and a 41.91% drop over the last month. This insider buying could be seen as a vote of confidence in the company's prospects, despite recent market challenges.
InvestingPro Tips highlight that SCWO holds more cash than debt on its balance sheet, which may have factored into Gannon's decision to increase his stake. This financial stability could be crucial as the company navigates through a period of expected sales decline and anticipated drop in net income for the current year.
The stock's high price volatility, as noted by InvestingPro, adds context to the recent price movements and Gannon's timing. With the stock trading at 48.37% of its 52-week high, the CEO may view this as an opportune moment for investment.
It's worth noting that analysts have set a fair value target of $2.5 per share, significantly higher than the $1.25 per share at which Gannon made his purchase. This disparity between the current price and potential value could explain the CEO's bullish stance.
Investors considering following Gannon's lead should be aware that SCWO is currently unprofitable and trades at high revenue and price-to-book multiples. These factors, along with 10 additional InvestingPro Tips available on the platform, provide a more comprehensive picture for potential investors.
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