RENO, Nev. - Aqua Metals, Inc. (NASDAQ: NASDAQ:AQMS) announced today the signing of a non-binding term sheet for a secured credit facility of up to $33 million with an undisclosed major private company. This funding is aimed at supporting the completion of the Phase One development of the Sierra AquaRefining Campus (ARC), a lithium-ion battery recycling facility.
In conjunction with this financial move, Aqua Metals has also set the pricing for an equity raise of $7 million, intended to strengthen the company's balance sheet, a key condition set by the strategic lender. The equity financing is slated to close on Friday.
The term sheet, which carries certain confidentiality and break-up provisions, is expected to lead to a definitive agreement by June 30, 2024, pending due diligence and negotiation. The strategic partnership is set to enhance Aqua Metals' financial position as the lender is significantly invested in decarbonization technologies worldwide.
Aqua Metals has recently completed an independent engineering report and lifecycle analysis by ICF International, affirming the company's technology and its environmental benefits. The anticipated funding will underpin the company's efforts to scale up sustainable battery recycling operations.
The Sierra ARC's first phase is designed to process 3,000 tons per year of black mass feedstock from pre-processed lithium-ion batteries, with output equivalent to around 30,000 average sized EV battery packs. This development is crucial for creating a circular supply chain for critical minerals in the U.S., according to Steve Cotton, CEO of Aqua Metals.
Aqua Metals' patented AquaRefining technology offers a more environmentally responsible approach to battery recycling, reducing CO2 emissions and eliminating sodium sulfate waste. The investment is expected to increase operational capacity and further develop this technology.
Aqua Metals, based in Reno, NV, is pioneering sustainable solutions for recycling materials essential to energy storage and electric vehicle supply chains. The company's first sustainable lithium battery recycling facility operates at the Tahoe-Reno Industrial Center. The information in this article is based on a press release statement from Aqua Metals.
InvestingPro Insights
As Aqua Metals, Inc. (NASDAQ: AQMS) positions itself to expand its operations with new funding, the company's financial health and market performance become focal points for investors. According to the latest data from InvestingPro, Aqua Metals holds a Market Cap of approximately $53.27 million USD, reflecting the current valuation of the company in the market. Despite a notable Revenue Growth of 525% in the last twelve months as of Q4 2023, the company's Gross Profit Margin stands at an alarming -25028%, indicating that costs far exceed revenue.
InvestingPro Tips suggest that while Aqua Metals holds more cash than debt, a positive sign for potential investors, analysts are not expecting the company to be profitable this year. This aligns with the reported Operating Income Margin of -78544% for the same period, underscoring the challenges the company faces in achieving profitability. Furthermore, the company's stock has experienced significant volatility, with a 1 Month Price Total Return of -14.42% and a 6 Month Price Total Return of -50.45%, signaling a period of instability for the stock's value.
For investors seeking a deeper analysis, InvestingPro offers additional insights and metrics, with a total of 16 InvestingPro Tips available for Aqua Metals. These tips provide a comprehensive understanding of the company's financial health and market performance. To explore these further, investors can visit InvestingPro and use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enriching their investment strategy with valuable data and analysis.
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