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Cleveland-Cliffs Inc. (NYSE:CLF) disclosed Friday that it has filed several exhibits with its registration statement on Form S-3, including an underwriting agreement dated Wednesday with UBS Securities LLC as the sole underwriter. The filing also includes an opinion and consent from the law firm Jones Day. The steel producer, currently trading at $12.26 with a market cap of $6.07 billion, appears undervalued according to InvestingPro Fair Value estimates.
The underwriting agreement and related legal documents were submitted as part of the company’s ongoing securities registration process. No additional details regarding the terms of the underwriting agreement or the nature of the securities being registered were provided in the filing. This comes as Cleveland-Cliffs operates with a significant debt burden while experiencing a strong 48.79% price return over the past six months, despite not being profitable over the last twelve months.
This information is based on a press release statement included in the company’s Form 8-K submitted to the Securities and Exchange Commission. InvestingPro data reveals the company is quickly burning through cash, with analysts not anticipating profitability this year. Discover more insights with the comprehensive Pro Research Report, available for Cleveland-Cliffs and 1,400+ other US equities.
In other recent news, Cleveland-Cliffs Inc. has announced the pricing of its underwritten public offering of 75 million common shares, expected to generate gross proceeds of $964 million before discounts and expenses. The company has granted UBS Securities LLC a 30-day option to purchase an additional 11.25 million shares, with the offering expected to close soon, subject to customary conditions. Proceeds from this offering are intended to repay borrowings under Cleveland-Cliffs’ asset-based credit facility, with remaining funds allocated for general corporate purposes. Additionally, Cleveland-Cliffs revealed POSCO as a strategic partner in a new alliance, following a memorandum of understanding signed earlier. This partnership aims to support POSCO’s U.S. customer base and ensure compliance with U.S. trade and origin requirements. Furthermore, Cleveland-Cliffs has successfully completed a steel production trial with a major automaker, transitioning to routine production and delivery of regular orders. These developments reflect Cleveland-Cliffs’ ongoing strategic initiatives and partnerships in the steel industry.
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