ASP Isotopes Inc. Enters Into Warrant Inducement Transaction for Approximately $5.5 Million in Gross Proceeds

The Company believes the structure of this transaction will result in substantially less fees, costs and dilution than may occur in alternative capital raising transactions, such as an underwritten offering or a private placement priced at a discount

WASHINGTON, April 09, 2024 (GLOBE NEWSWIRE) -- ASP Isotopes Inc. NASDAQ: ASPI ("ASP Isotopes” or the “Company”), an advanced materials company dedicated to the development of technology and processes for the production of enriched isotopes for use in multiple industries, today announced that it 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 (the “Existing Warrants”), 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 (the “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 “Securities Act”). 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.

The New Warrants described above were offered in a private placement pursuant to an applicable exemption from the registration requirements of the Securities Act and, along with the common stock issuable upon their exercise, have not been registered under the Securities Act, and may not be offered or sold in the United States absent registration with the SEC or an applicable exemption from such registration requirements. The securities were offered only to accredited investors. The Company has agreed to file a registration statement with the SEC covering the resale of common shares issuable upon exercise of the New Warrants.