By Molekule Group, the air purification technology company, saw its shares fall by 10% to $1.60 in morning trading as it announced its plans to explore various capital raising opportunities. This comes as the company faces mounting costs and widening losses.
In an update after the bell on Tuesday, Molekule stated that it would consider a potential rights offering or private placement in the third quarter to improve its liquidity position. The company has experienced order delays in its business-to-business operations and aims to use the proceeds from any capital raise to manage and alleviate costs related to development, research, and funding operations. Furthermore, Molekule has also expressed interest in exploring cost-cutting measures.
Amid these concerns, Molekule reported a second-quarter loss of $25 million, or 76 cents a share, compared to $5.2 million, or 37 cents a share, in the same quarter last year. Consequently, the company’s shares have experienced a decline of almost 50% since the beginning of the year.
In addition to these challenges, Molekule recently announced that its deal to acquire Aura Smart Air has been terminated. The Palm Beach Gardens, Fla.-based company cited a material and incurable breach of their agreement by Aura as the reason for the termination. However, Aura disputes this claim and accuses Molekule of breaching the agreement.
While Molekule strives to address its financial situation and regain stability, the company’s path forward remains uncertain.
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