TULSA, Okla. - ClearSign Technologies Corporation (NASDAQ:CLIR), a company specializing in industrial combustion and sensing technologies, has announced the pricing of a combined public and private offering.
The public offering includes 4,620,760 shares of common stock and corresponding warrants, with each share priced at $0.91 and each warrant at $0.01. These warrants, exercisable immediately upon issuance at $1.05 per share, will expire five years from the date of issuance.
Concurrently, ClearSign is conducting a private placement for an accredited investor, involving 5,405,405 shares of common stock or pre-funded warrants, along with redeemable warrants to purchase up to 8,108,108 shares of common stock. The private placement's pricing is set at $0.91 per share and $0.015 per one and a half warrant, with an exercise price of $1.05 per share, exercisable six months after issuance.
Public Ventures, LLC serves as the sole book-running manager for the public offering and as a placement agent for the private placement. ClearSign anticipates gross proceeds of approximately $9.3 million from these offerings, excluding any potential exercise of the underwriters' option to purchase additional shares and warrants, as well as underwriting and placement agent discounts, commissions, and other related expenses.
Both offerings are expected to close on April 23, 2024, provided all customary closing conditions are met. The company plans to use the net proceeds for working capital, research and development, marketing and sales, and general corporate purposes.
The public offering is being made under a shelf registration statement on Form S-3, effective since August 12, 2022. The preliminary prospectus supplement and accompanying base prospectus are available on the SEC's website, with a final prospectus supplement to be filed in due course.
The private placement is being executed under an exemption from registration in accordance with Section 4(a)(2) of the Securities Act of 1933 and/or Rule 506(b) promulgated thereunder.
This announcement is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities.
InvestingPro Insights
As ClearSign Technologies Corporation (NASDAQ:CLIR) embarks on its latest public and private offerings, investors may be keen to understand the company's financial health and market performance. Based on real-time data from InvestingPro, the company holds a market cap of approximately $33.57 million USD, suggesting a modest size within the technology sector. Despite a challenging market environment, ClearSign has demonstrated significant sales growth, with revenue in the last twelve months as of Q4 2023 increasing by an impressive 542.51%.
InvestingPro Tips highlight that ClearSign has more cash than debt on its balance sheet, which can be a reassuring sign for investors concerned about the company's financial stability. Additionally, analysts anticipate sales growth in the current year, which could signal a positive trajectory for the company's financial performance. However, it's worth noting that the stock has faced recent setbacks, with a price total return of -17.31% over the last month and analysts not expecting the company to be profitable this year.
For investors looking for a deeper dive into ClearSign's financials and market prospects, InvestingPro offers a wealth of additional tips—12 in total. These tips cover a range of metrics from profitability to stock performance and valuation multiples. Interested readers can access these insights, along with a comprehensive analysis of ClearSign and other stocks, by subscribing to InvestingPro. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
The upcoming closing of ClearSign's offerings on April 23, 2024, could be a pivotal moment for the company, and the InvestingPro platform offers real-time updates and expert analysis to help investors stay informed.
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