ClearSign Combustion’s Risk of Share Shortage: A Threat to Warrant Obligations and Equity Issuance

ClearSign Combustion (CLIR) has disclosed a new risk, in the Share Price & Shareholder Rights category.

ClearSign Combustion faces a significant business risk due to a potential shortfall in authorized shares necessary for fulfilling obligations related to Private Warrants. The company’s recent public and private offerings have led to concerns that without an increase in authorized shares, they may not be able to maintain the requisite reserve for warrant exercises. This limitation could prevent the issuance of common stock upon warrant exercises, risking a breach of warrant terms. The situation is compounded by the uncertainty of obtaining stockholder approval for increasing the authorized share count, which also restricts future equity issuance capabilities.

Overall, Wall Street has a Moderate Buy consensus rating on CLIR stock based on 1 Buy.

To learn more about ClearSign Combustion’s risk factors, click here.