Birchtech Corp. (AMEX: BCHT) commenced trading on the NYSE American exchange after executing a reverse stock split and a public offering of approximately 6.25 million shares at $2.40 per share, raising about $15 million. This uplisting from over-the-counter markets marks a pivotal step for the sustainable air and water treatment company. The company's board approved a 1-for-5 reverse stock split in late December to enhance the stock price and facilitate the planned uplisting. Richard MacPherson, President & CEO of Birchtech Corp., stated that this reverse stock split is anticipated to improve the company's capital market profile, potentially unlocking access to a broader pool of institutional capital.
The capital raise aligns with Birchtech receiving final judgment in its patent lawsuit initiated in July 2019. Although initially awarded $57 million, the company expects the final judgment to amount to $78 million. This settlement, combined with the proceeds from the stock offering, furnishes substantial resources for expansion in the water purification market and increased market share across the U.S. coal-fired power fleet. Birchtech foresees securing numerous new licenses and supply contracts, typically spanning 3-5 years, as it cultivates relationships with utilities employing its patented technologies for mercury emissions capture. The company projects the potential to double its business with the coal-fired power fleet over the next few years.
In the water treatment sector, Birchtech has obtained purchase orders totaling $0.9 million from a mid-Atlantic power utility after three years of development. The company has also collaborated with Civil & Environmental Consultants Inc. (CEC) to deliver testing services to utility customers and maintains a pipeline of potential water treatment projects. This expansion into water treatment responds to escalating concerns about contaminants in water sources, particularly harmful substances like PFAS "forever chemicals" associated with health risks such as low birth rates, heightened cancer risks, and high blood pressure in pregnant women. Water utilities are increasingly seeking more effective and economical contaminant removal solutions.
With approximately $98 million in combined settlement and offering proceeds, Birchtech has equipped itself to address rising demand for cleaner air and water technologies. The company's transition to a major exchange listing mirrors its evolving business strategy and financial growth prospects in the cleantech sector. For more information on the company's technologies, visit https://www.birchtechcorp.com.
