Stardust Power Inc., the lithium refinery operator in Muskogee says it made $4.3 million on its recently closed underwritten public offering.
In an announcement Wednesday, the Connecticut-based company said the proceeds were from the offering of 21,500,000 shares of common stock. The announcement came one day after Stardust Power shares plunged nearly 53% in value in trading on Wall Street. Shares dropped 20 cents for the day, ending at 18 cents with a loss of 52.64%.
The offering closed June 18 and the public offering price per share of Common Stock was $0.20. In addition, the Company has granted Aegis Capital Corp. a 45-day option to purchase up to an additional 3,225,000 shares of Common Stock, representing 15.0% of the number of shares of Common Stock sold in the offering solely to cover over-allotments, if any.
If the over-allotment option is exercised in full, aggregate gross proceeds to the Company are expected to total approximately $4.9 million. These funds will support the completion of the Definitive Feasibility Study (DFS/FEL-3), a transformational milestone for Stardust Power. The DFS will provide detailed engineering, comprehensive capital expenditure estimates, and a clearly defined scope of build for the Company’s proposed lithium processing facility in Muskogee, Oklahoma, laying a strong foundation for final investment decision (FID) efforts and bringing the project significantly closer to securing financing for the construction of Phase 1.
Aegis Capital Corp. acted as the sole book-running manager for the offering. Thompson Hine LLP acted as counsel to the Company. Kaufman & Canoles, P.C. acted as counsel to Aegis Capital Corp.
Source: Stardust Power release
