ASP Isotopes Inc (NASDAQ:ASPI) shares are trading lower on Wednesday after the company announced the pricing of an underwritten public offering.
- ASPI is encountering selling pressure. See what is happening here.
What Happened: ASP Isotopes, an advanced materials company specializing in isotope production technology for various industries, priced an underwritten public offering of approximately 17.17 million shares of common stock for $210.3 million in gross proceeds, prior to underwriting fees and offering costs.
ASP Isotopes also provided the underwriters with a 30-day option to acquire approximately $31.5 million of additional common stock at the offering price.
The transaction is anticipated to close on Oct. 16, pending standard closing conditions. All of the shares of common stock in the offering will be sold by the company. ASP Isotopes plans to use the proceeds for general corporate purposes, covering things like day-to-day operations, working capital and future investments.
Why It Matters: Public offerings generally create downward pressure on stock prices due to shareholder dilution. Issuing over 17 million new shares expands the total share count, which reduces the value of shareholder’s existing common stock. Market participants frequently respond negatively to such announcements as the surge in available shares can exceed immediate buying interest.
How To Buy ASPI Stock
By now you're likely curious about how to participate in the market for ASP Isotopes – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
ASPI Price Action: ASPI shares are down 13.24% at $12.18 on Wednesday at the time of publication, per Benzinga Pro.
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