Why Is Boron Products Supplier 5E Advanced Materials Falling Premarket?

5E Advanced Materials (FEAM) stock slumped over 17% in premarket trading on Friday.

The supplier of specialty boron and advanced boron derivative materials set the pricing of its public offering of 2.37 million shares at $3.50 per share. The offering price was 23.4% lower than its previous closing price on Thursday.

The gross proceeds to 5E from the Offering are expected to be approximately $8.31 million, which the company intends to use for the operation of its small-scale boron facility (SSBF), wellfield development, analysis, and general corporate purposes.

Retail sentiment on Stocktwits about the 5E stock was in the ‘neutral’ territory at the time of writing.

Konik Capital Partners is acting as lead bookrunning manager for the offering expected to close on Aug. 25.

Alongside boron, the company also intends to produce lithium at its project in California. It plans to make boron and lithium products, which will target applications in the fields of electric transportation, clean energy infrastructure, such as solar and wind power, fertilizers, and domestic security.

5E intends to aid in U.S. President Donald Trump’s efforts to cut the country’s reliance on China, which controls the bulk of the boron refining capacity. The U.S. government has eased up restrictions related to permits and has also invested in several mining firms.

One user expected the stock to trade in $3.3 to $3.4 range on Friday.

So far this year, 5E stock has fallen nearly 70%.

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