Deanna Rene Estes, a director at 374Water Inc. (NASDAQ:SCWO), recently made significant acquisitions of the company's common stock. According to a recent filing, Estes purchased 24,000 shares of common stock on November 18 at a price of $1.25 per share, totaling $30,000. This transaction follows an earlier acquisition on November 15, where Estes received 40,000 restricted stock units at no cost, fully vested on the date of the grant. Post these transactions, Estes holds a total of 76,500 shares of the company's common stock directly. Additionally, Estes acquired warrants for 36,000 shares, exercisable at $1.125 each, with an expiration date set for November 17, 2029.
In other recent news, 374Water Inc. has secured approximately $12.2 million through a registered direct offering of shares and warrants. The cleantech company sold nearly 9.8 million shares of common stock, coupled with warrants to purchase an additional 14.7 million shares. The warrants, exercisable immediately upon issuance, are priced at $1.125 per share and will remain valid for five years. This capital infusion is expected to be finalized by November 18, 2024, with D. Boral (OTC:BOALY) Capital LLC acting as the exclusive placement agent for the offering.
In parallel developments, 374Water has commenced operations of its AirSCWO technology at the Iron Bridge Regional Water Reclamation Facility in Orlando. This marks a significant step in commercial biosolids processing, aligning with the city's sustainability goals. The Florida Department of Environmental Protection supported the installation with a grant under the Bilateral Infrastructure Law emerging contaminant funding. CEO Chris Gannon highlighted the operational success in Orlando as crucial for showcasing the technology's capacity to manage organic waste streams at scale.
Further, the company has announced additional commitments across the United States, including a deployment to Orange County Sanitation in California slated for 2025. These developments underscore 374Water's ongoing efforts to innovate in waste management and wastewater treatment.
InvestingPro Insights
The recent insider buying by Deanna Rene Estes at 374Water Inc. (NASDAQ:SCWO) comes at a time when the company's stock has experienced significant volatility. According to InvestingPro data, SCWO's stock has taken a substantial hit over the last week, with a 1-week price total return of -26.16%. This decline extends to a -40.46% return over the past month, suggesting a challenging market environment for the company.
Despite these short-term setbacks, it's noteworthy that 374Water holds more cash than debt on its balance sheet, as highlighted by an InvestingPro Tip. This financial position could provide the company with some stability and flexibility during turbulent times. Additionally, the company's liquid assets exceed its short-term obligations, which may be reassuring for investors concerned about the company's financial health.
However, potential investors should be aware that analysts anticipate a sales decline in the current year, and the company is not expected to be profitable this year. These InvestingPro Tips align with the reported revenue growth of -81.0% over the last twelve months and a negative gross profit margin of -413.29%.
For those interested in a deeper analysis, InvestingPro offers 14 additional tips for 374Water Inc., providing a more comprehensive view of the company's financial situation and market position.
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