ASP Isotopes enters warrant inducement transaction for $5.5M in gross proceeds

ASP Isotopes has entered into an agreement with an institutional investor that is an existing holder of warrants to purchase shares of common stock of the Company for cash wherein the investor agreed to exercise the Existing Warrants to purchase the maximum of 3,164,557 shares of common stock at an exercise price of $1.75 per share, resulting in gross proceeds of approximately $5.5 million, before deducting offering expenses. In consideration for the exercise of the Existing Warrants for cash, the exercising holder will receive new warrants to purchase up to an aggregate of 1,225,000 shares of common stock in a private placement pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. The Company believes the structure of this transaction will result in substantially less fees, costs and dilution than may occur in other capital raising transactions, such as an underwritten offering of common stock or a private placement priced at a discount. “We took the opportunity to do this transaction because we view it as an attractive means of raising additional capital; $5.5 million for 1.225 million new warrants is effectively $4.50 per share with minimal transaction costs,” said Paul Mann, Chairman and CEO of ASP Isotopes. The offering is expected to close on or about April 11, 2024. The New Warrants will be exercisable on and after the date that is six months following the date of issuance at an exercise price of $3.90 per share and will expire on the five year anniversary of their initial exercise date.