Shares of Abundia Global Impact Group Inc. (NYSE: AGIG) fell 14.6% on Friday after the company disclosed plans for a registered direct offering to raise roughly $20 million in gross proceeds. The financing arrangement was announced by the low-carbon energy solutions firm as it seeks capital to advance several near-term operational milestones.
Under the securities purchase agreement, Abundia has agreed to sell 5,934,718 shares of common stock or pre-funded warrants to a newly participating institutional investor. The company said the transaction is expected to close on or about February 23, 2026, though it remains subject to customary closing conditions.
Planned uses of proceeds
Abundia outlined multiple intended uses for the net proceeds from the offering. The company plans to complete its Front-End Engineering and Design (FEED) study, finalize the acquisition of RPD Technologies, reduce outstanding debt, initiate construction of an innovation hub, and apply remaining funds toward working capital and general corporate purposes. Abundia describes its business focus as converting biomass and plastics waste into high-value low-carbon fuels.
Management comment and placement agent
Ed Gillespie, Abundia's chief executive officer, said the financing will "meaningfully de-risk our near-term objectives" and is expected to fully fund the completion of the FEED study, advance the RPD Technologies acquisition, and accelerate development of the innovation hub. Titan Partners, a division of American Capital Partners, is serving as the sole placement agent for the registered direct offering.
Timing and conditionality
The firm set an anticipated closing date on or about February 23, 2026, and emphasized that the completion of the offering depends on customary closing conditions. Investors reacted to the announcement with a notable share-price decline on the day the offering was disclosed.
Summary takeaway
Abundia has launched a roughly $20 million registered direct offering with the proceeds designated for a FEED study, an acquisition, debt reduction, construction of an innovation hub and general corporate needs. The stock moved lower following the announcement, and the offering remains subject to customary closing conditions.