• The offer price of roughly $10 per share represents a discount of nearly 42% when compared to the stock’s closing price of $17.15 as of Thursday.
• The company said that recent capital raises, along with other cost-cutting actions, have alleviated “going concern” worries.
• For the first quarter, the firm posted revenue of $12 million and a loss per share of $1.77.

Shares of carbon recycling company LanzaTech Global Inc. (LNZA) were deep in the red on Friday after the company disclosed plans to raise capital through a steeply discounted stock offering.

At the time of writing, LNZA stock was down more than 41% and on track for its biggest decline ever.

LNZA’s Stock Offering

The company said it is selling two million common shares to certain institutional investors to raise $20 million and intends to use the proceeds for general corporate purposes.

The offer price of roughly $10 per share represents a discount of nearly 42% when compared to the stock’s closing price of $17.15 as of Thursday.

Earlier this month, the company sold a million shares at $10 apiece to raise $10 million, and raised another $20 million in January.

On Thursday, the company said the recent capital raises, together with its ongoing business optimization and cost-reduction plans, have alleviated the substantial doubt about its ability to continue as a going concern for the next 12 months.

LNZA’s Q1 Results At A Glance

For the first quarter (Q1), revenue came in at $12 million, below the $12.1 million consensus estimate polled by Fiscal AI.

However, loss per share was $1.77, smaller than the $2.88 per share loss analysts expected.

What Retail Thinks About LNZA

On Stocktwits, users were largely pessimistic about the company following news of the stock offering.

LNZA stock has lost nearly a third of its value so far this year and almost two-thirds over the past 12 months, underperforming the S&P 500.

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