Oklo Inc. (NYSE:OKLO), a company specializing in electric services, announced on Monday that it will issue approximately 2.5 million new shares of Class A common stock to certain eligible holders. This decision comes as the company's stock price surpassed a specific threshold outlined in a merger agreement from last year.
The share issuance is a direct result of Triggering Event III, a condition stipulated in the Agreement and Plan of Merger and Reorganization dated July 11, 2023. The trigger was met when Oklo's common stock closing price equaled or exceeded a predetermined price for 20 trading days within a 60-day consecutive trading period ending on the Determination Date, which was Monday.
The eligible holders, defined in the merger agreement, are set to receive their pro rata share of the Earn Out Shares within five business days following the Determination Date. The issuance is part of the terms agreed upon following Oklo's merger with AltC Acquisition Corp. and Oklo Technologies, Inc., previously known as Oklo Inc., now referred to as Legacy Oklo.
Additionally, the company disclosed that certain vesting conditions were met for shares held by the initial sponsors and insiders as per a Letter Agreement dated July 11, 2023. Due to the achievement of the Fourth Vesting Price on Monday, 12.5% of the Vesting Founder Shares became vested. Furthermore, with the satisfaction of the 36 Month Lock-Up Period condition, the lock-up restrictions on 30% of the Founder Shares and Private Placement Shares expired.
The Amended and Restated Registration Rights Agreement, dated May 9, 2024, also specified that 30% of the Lock-Up Shares held by insiders would be released from lock-up restrictions following the same stock price condition.
This series of events underscores a significant achievement for Oklo Inc. as it continues to navigate its post-merger operational landscape. The company's business address is located at 3190 Coronado Dr., Santa Clara, California, and the information is based on a press release statement.
In other recent news, Oklo Inc. has been making significant strides in the clean energy sector. The company has announced partnerships with two leading data center providers to supply up to 750 megawatts of low-carbon power. This move is expected to support data centers across the United States and expand Oklo's customer pipeline to approximately 2,100 MW. Oklo has also secured an Environmental Compliance Permit for its first commercial advanced fission power plant site at the Idaho National Laboratory. The company's recent developments include the conclusion of its lock-up period, potentially increasing the stock's market liquidity, and the vesting of 50% of the Vesting Founder Shares held by the Sponsor, AltC Sponsor LLC.
Oklo has also switched to Deloitte & Touche LLP as its new independent registered public accounting firm, demonstrating its commitment to financial accountability. Analysts from B. Riley and Citi have initiated coverage of Oklo, with B. Riley highlighting the potential of the company's advanced nuclear technology, while Citi adopted a neutral stance citing potential regulatory hurdles. Oklo has also entered into a Preferred Supplier Agreement with Siemens (ETR:SIEGn) Energy to further commercialize its advanced fission technology, a move supported by a $5 million cost-share award from the U.S. Department of Energy's Advanced Research Projects Agency-Energy. These are the recent developments for Oklo Inc.
InvestingPro Insights
Oklo Inc.'s recent share issuance and vesting events reflect the company's strong market performance, which is further supported by InvestingPro data. The stock has shown remarkable momentum, with a 146.89% price return over the past month and an impressive 204.45% return over the last three months. This aligns with the triggering of share issuance and vesting conditions based on stock price thresholds.
InvestingPro Tips highlight that Oklo "holds more cash than debt on its balance sheet" and "liquid assets exceed short term obligations," suggesting a solid financial position as the company moves forward post-merger. However, investors should note that the stock "generally trades with high price volatility," which may explain the significant price movements that led to the recent corporate actions.
For readers interested in a deeper analysis, InvestingPro offers 14 additional tips for Oklo, providing a more comprehensive view of the company's financial health and market position.
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