By Dean Seal
Molekule Group shares slid 10% to $1.60 in morning trading after the company said it is exploring various capital raising opportunities amid mounting costs and widening losses.
The air purification technology company said after the bell on Tuesday that it will consider a potential rights offering or private placement in the third quarter to help improve its liquidity position following order delays in its business-to-business operations.
Proceeds from any capital raise would be used to manage or alleviate the company's costs tied to development, research and funding operations, Molekule said, adding that it is also exploring cost-cutting measures.
Molekule disclosed its liquidity concerns while reporting a second-quarter loss of $25 million, or 76 cents a share, compared with $5.2 million, or 37 cents a share, in the same quarter a year ago.
Molekule shares have fallen by almost 50% since the start of the year.
The Palm Beach Gardens, Fla.-based company disclosed two days ago that its deal to acquire Aura Smart Air has been terminated, saying the target company has committed a material and incurable breach of their agreement. Aura is disputing the termination and accusing Molekule of breaching the agreement.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
August 16, 2023 10:24 ET (14:24 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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