DALLAS – Solidion Technology, Inc., a provider of advanced battery technology solutions, announced it has secured approximately $4 million through a securities purchase agreement with institutional investors. The private placement, which is set to close on September 3, 2024, will fund the company's general working capital and administrative needs.
The agreement entails the issuance of around 12.2 million units, including both standard and pre-funded units. Pre-funded units are being offered at the same price as the standard units but minus the warrant exercise price of $0.0001. Each unit consists of one common stock share or a pre-funded warrant, along with two common warrants exercisable at $0.3274 per share, and an additional common warrant with an exercise price of $0.0001. The warrants will be exercisable immediately and are valid for 5.5 years from the shareholder approval date.
Details regarding the adjustment of securities issued are to be outlined in the upcoming Current Report on Form 8-K. EF Hutton is the exclusive placement agent for this offering, while legal counsel is provided by Loeb & Loeb LLP for Solidion and Sichenzia Ross Ference Carmel LLP for the placement agent.
The securities involved in this transaction have not been registered under the Securities Act of 1933 and are limited to accredited investors. In line with a registration rights agreement, Solidion will file registration statements with the SEC for the resale of the common stock and shares from the exercise of warrants.
Solidion, headquartered in Dallas with production facilities in Dayton, Ohio, specializes in manufacturing battery materials and components. Their product line includes advanced anode materials and three classes of solid-state batteries, all featuring an advanced polymer-based solid electrolyte.
The company's press release contains forward-looking statements that involve risks and uncertainties. Solidion has stated its intention to scale production and increase the market for its products but acknowledges that actual results may vary due to a number of factors.
Information for this article is based on a press release statement from Solidion Technology, Inc.
In other recent news, Dallas-based Solidion Technology Inc. is facing potential delisting from the Nasdaq Stock Market due to its share price falling below the required minimum. The company, operating within the miscellaneous electrical machinery sector, has until January 28, 2025, to address the issue and meet Nasdaq's minimum bid price requirement. Solidion was informed by Nasdaq that its common stock had not maintained the minimum closing bid price of $1.00 per share for 30 consecutive business days, as stipulated by Nasdaq Listing Rule 5450(a)(1).
The company has a 180-day period to regain compliance by having its common stock close at or above $1.00 per share for at least 10 consecutive business days before the January 2025 deadline. If Solidion fails to meet the criteria by the deadline, it could be eligible for a second 180-day grace period if it applies to transfer its listing to the Nasdaq Capital Market, provided it meets all other initial listing standards except the minimum bid price. The company, led by CEO Jaymes Winters, is currently evaluating options to regain compliance with Nasdaq's continued listing requirements.
InvestingPro Insights
As Solidion Technology, Inc. strides forward with its recent capital raise, the company's financial health and market performance metrics provide a snapshot of its current standing. With a modest market capitalization of $30.28 million, Solidion's valuation reflects the challenging environment it operates in. The company's price-to-earnings (P/E) ratio stands at -3.49, and an adjusted P/E ratio of -3.24 for the last twelve months as of Q2 2024, indicating that investors are factoring in the firm's negative earnings.
InvestingPro Tips suggest that Solidion's negative gross profit margin of -563.56% and a significant operating income margin decline to -122061.75% in the same period could be red flags for potential profitability issues. Additionally, the company's return on assets at -195.64% further underscores the financial challenges it faces.
Despite these hurdles, Solidion's commitment to scaling production and expanding its market presence is evident in its strategic capital raise. It's worth noting that the InvestingPro Fair Value estimate for Solidion stands at $0.23, which could imply that the current share price of $0.33 is somewhat above what InvestingPro analysis considers fair value.
For investors seeking a deeper dive into Solidion's potential and risks, InvestingPro offers a comprehensive set of additional tips—currently totaling 15—that can help in making a more informed investment decision.
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