FREMONT, CA – Amprius Technologies, Inc. (NYSE:AMPX), a manufacturer of electrical machinery and equipment, announced significant changes in its corporate structure and leadership in a recent SEC filing. On Wednesday, Amprius Holdings, the majority stockholder of Amprius Technologies, dissolved and distributed over 57 million shares of common stock to its stockholders, effectively ending its majority control. This distribution has led to a shift in the ownership structure of the company.
Concurrent with this change, Amprius Technologies has assumed outstanding stock options from Amprius Holdings. The company has adjusted the terms of these options to align with U.S. tax regulations. These Assumed Options, which amount to over 7 million shares with an average exercise price of $2.10, are now part of Amprius Technologies' incentive plans.
The company's stock plan will no longer issue new awards following this transition. Amprius Technologies has also entered into a lock-up agreement with certain board members, including Donald R. Dixon and Dr. Wen Hsieh, restricting the sale of 50% of their newly acquired shares for six months. This lock-up agreement covers approximately 9.8 million shares.
Executive officers of Amprius Technologies have also received shares as part of the distribution, with specific numbers provided for Jonathan Bornstein and Dr. C. Ionel Stefan. The filing included detailed information about the stock options held by executive officers and directors, including expiration dates, exercise prices, and the number of shares underlying the options.
In other recent news, Amprius Technologies, a leader in lithium-ion battery technology, has reported several significant developments. The company has entered into a development contract with a Fortune 500 company to create a high-energy SiMaxx™ pouch cell, aiming to reduce the weight and size of the client's current battery without compromising performance. Amprius has also secured sales agreements exceeding $20 million for light-duty vehicle applications, expected to be fulfilled by mid-2025, in addition to a 2GWh Letter of Intent with another Fortune 500 company.
Financial firms Truist Securities and Oppenheimer have expressed confidence in Amprius, with Truist raising its price target and both firms maintaining positive ratings. The company's second-quarter revenue saw a 105% year-over-year increase, reaching $3.3 million, but it also reported a net loss of $12.5 million due to preconstruction costs and increased operating expenses.
Board changes were also announced, including the resignation of Justin Mirro and Mary Gustanski, and the appointment of Livingston "Tony" Satterthwaite. Lastly, Amprius received a notice from the New York Stock Exchange regarding non-compliance with listing standards, but has expressed its intent to rectify the deficiency within the given six-month period. These are the recent developments for Amprius Technologies.
InvestingPro Insights
As Amprius Technologies undergoes significant corporate restructuring, InvestingPro data offers additional context to the company's financial position. Despite recent changes, Amprius maintains a strong cash position, with InvestingPro Tips indicating that the company "holds more cash than debt on its balance sheet." This financial cushion could prove crucial as the company navigates its new ownership structure and compensation arrangements.
The company's market capitalization stands at $177.68 million, reflecting its current valuation following the redistribution of shares. Notably, Amprius has shown impressive revenue growth, with a 216.99% increase in the last twelve months as of Q2 2024. This aligns with another InvestingPro Tip suggesting that "analysts anticipate sales growth in the current year."
However, investors should note that Amprius is "quickly burning through cash" according to InvestingPro Tips, which may be a consideration given the recent corporate changes and stock option adjustments. The company's profitability remains a challenge, with a negative gross profit margin of -153.77% in the last twelve months.
For those seeking a deeper analysis, InvestingPro offers 17 additional tips on Amprius Technologies, providing a comprehensive view of the company's financial health and market position.
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