Comstock Secures Major Funding to Accelerate Recycling Growth

Comstock US2057683029

Comstock Inc. has successfully concluded a significant equity offering, raising substantial capital to fund the expansion of its recycling operations. The move comes as the company achieves key regulatory milestones for its facilities in Nevada and California, though the share issuance initially weighed on its stock price.

The company finalized the placement of approximately 18.2 million shares of common stock last Friday, generating gross proceeds of around $50 million. This capital is earmarked to advance the strategic objectives of its subsidiary, Comstock Metals LLC. Primary uses of the funds include investment in a second industrial-scale facility for metal recovery and accelerating the site selection process for additional projects.

The lead underwriter for the offering also holds a 30-day option to purchase up to an additional 2.7 million shares to cover any over-allotments.

Operational Milestones and Asset Sale

Alongside its financing activities, Comstock is making tangible progress in building its solar panel recycling infrastructure. The firm recently inaugurated a new collection and preparation center in California’s Central Valley. Furthermore, Comstock has received the final regulatory authorization for its large-scale recycling plant in Silver Springs, Nevada, securing all necessary environmental permits for the site.

The company also bolstered its liquidity through the sale of a remaining net smelter royalty (NSR). The final payment of $1 million from this transaction was received on January 21.

Market Response and Upcoming Briefing

The announcement of the equity offering prompted a decline in the company's share price in after-hours trading. Such capital raises often introduce short-term pressure on a stock as the issuance of new shares dilutes existing shareholders' stakes.

Comstock's management team is scheduled to host a webinar on Tuesday, February 3, to discuss these recent financial developments and provide an update on the company's current operational status.