American Battery Stock Rises On $10 Million Direct Offering: Retail's Upbeat

The gross proceeds are estimated at $10 million.

American Battery stock jumped nearly 20% on Thursday after the battery materials company entered into a securities purchase agreement with a couple of institutional investors to purchase and sell 3,773,586 shares of its common stock and warrants, lifting retail sentiment.

The gross proceeds are estimated at $10 million before deducting placement agent fees and other estimated offering expenses payable by the company.

The closing of the offering is expected to take place on or about December 27, 2024, subject to the satisfaction of customary closing conditions.

According to the statement, the last closing market price of its stock before the announcement was $2.60 per share, with a combined offering price of $2.65 per share and accompanying warrants, priced “at-the-market” under Nasdaq rules.

The warrants have an exercise price of $2.80 per share, and will be exercisable immediately from the date of issuance and will expire five years from the initial exercise date.

Retail sentiment on Stocktwits turned ‘extremely bullish’ from ‘neutral’ a day ago. Message volumes were ‘extremely high’ compared to normal a day ago.

American Battery, which focuses on integrated critical battery materials, serves both primary battery minerals manufacturing and secondary minerals lithium-ion battery recycling.

As of June 30, 2024, the company had total cash on-hand of $7 million.

American Battery stock is down 28% year-to-date.

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