Shares of TMC the Metals Company (NASDAQ:TMC) are up nearly 26% at the time of writing after it entered into a securities purchase agreement for the purchase of ~13.46 million common shares and accompanying Class A warrants to purchase ~6.73 million shares with certain investors.
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Under the agreement, each common share and the associated warrant are being sold at $2. The warrants have an initial exercise price of $3 per share, can be exercised immediately after issuance, and expire on December 31, 2027.
TMC expects $27 million in gross proceeds from the offering and plans to use the funds raised for working capital and general corporate requirements. The offer is anticipated to close on or about August 16 and TMC also anticipates two additional closings worth $2.5 million and $6.5 million on or before November 30, 2023, and January 31, 2024, respectively.
Additionally, TMC also announced second-quarter numbers today, incurring a net loss per share of $0.05. The figure was $0.07 narrower than the Street’s estimates. The company is currently debt-free and had a cash pile of $20 million at the end of the quarter.
With today’s price gains, TMC shares have surged nearly 93% over the past three months alone. Overall, the Street has a $5 consensus price target on TMC, pointing to a 259.7% potential upside in the stock.
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