ClearSign Prices $4.33 Offering for 777,780 Shares; Stock Falls 20% to $3.64
CLIR•ClearSign priced an underwritten offering of 777,780 common shares at $4.33 each, raising $3.37M with a 30-day 15% over-allotment option potentially boosting proceeds to $3.87M. Shares dropped from $4.56 at close to $3.64 after hours, a 20.18% decline.
1. Pricing Details of Public Offering
ClearSign announced an underwritten public offering of 777,780 common shares at $4.33 per share, generating gross proceeds of $3,367,787. The underwriter has a 30-day option to purchase up to 15% more shares at the same price, which if exercised would raise total proceeds to $3,872,955.51, with closing expected on June 1.
2. Intended Use of Proceeds
Net proceeds from the offering are earmarked for working capital, research and development, marketing and sales initiatives, and general corporate purposes. Management expects these funds to support expansion of combustion and sensing technology deployments and accelerate R&D for hydrogen fuel integration.
3. Stock Reaction in After-Hours Trading
Upon announcement of the offering, shares fell from $4.56 at the close of regular trading to $3.64 in after-hours, marking a 20.18% drop. The decline reflects investor concerns over dilution and potential downward pressure on stock valuation.
