Austin-Based Superconductor Technologies To Sell Stock

AUSTIN, TX — Superconductor Technologies Inc. on Monday announced a public offering of some of 1.7 million of its common shares as a way of raising working capital and for general corporate purposes.

The public offering calls for a per-share price of $1 toward raising $1.7 million. The offering is expected to close on or about May 23, 2019, subject to customary closing conditions, company officials said. H.C. Wainwright & Co. is acting as the sole book-running manager for the offering, according to a corporate advisory.

The announcement comes on the heels of the Austin-based company's May 9 release of its first-quarter results ending March 30. The company reported a net loss of $2.3 million, or 70 cents per share, compared to a net loss of $2.2 million ($1.98 per share) for the comparable period in 2018. As of March 30, the company had $3.6 million in cash and cash equivalents, according to documents filed with the Securities and Exchange Commission.

STI did not record net revenues in the first quarter of 2019, compared to $246,000 in the first quarter of 2018, the company said at the time. Last year's revenue was derived from the company’s ongoing Department of Energy (DOE) Next Generation Electrical Machine project, officials said at the time.

“We continued to make progress in the first quarter as we ramp our production capability to meet customer expectations," Jeff Quiram, STI’s president and CEO, said at the time. "We still expect to start delivering against orders for our Conductus® high performance magnet wire in the second quarter, with a focus on shipments of 10’s of kilometers later this year. Our superconducting magnet customers have forecasted the need for 1000’s of kilometers of wire starting in the next few years."

The company also reported a project win from the Institute for Plasma Research, India, (IPR) for next generation Tokamak fusion development. "This Conductus wire order from the prestigious IPR is another step forward as we continue to see growing interest in high performance superconducting wire optimized for high magnetic field/low temperature applications," officials said then. "Fusion has the promise of delivering environmentally friendly and cost-efficient energy for future generations. We are excited to partner with IPR as they move forward in their fusion development."

STI trades is stock on the NASDAQ exchange. Shares closed Monday at $1.26, down six cents, or 4.18 percent, from the previous trading session.

About Superconductor Technologies Inc.

Superconductor Technologies Inc. is a global leader in superconducting innovation. Its Conductus® superconducting wire platform offers high performance, cost-effective and scalable superconducting wire. With 100 times the current carrying capacity of conventional copper and aluminum, superconducting wire offers zero resistance with extreme high current density. This provides a significant benefit for electric power transmission and also enables much smaller or more powerful magnets for motors, generators, energy storage and medical equipment.

Since 1987, STI has led innovation in HTS materials, developing more than 100 patents as well as proprietary trade secrets and manufacturing expertise. For more than 20 years STI utilized its unique HTS manufacturing process for solutions to maximize capacity utilization and coverage for Tier 1 telecommunications operators.