ASP Isotopes Stock Is Soaring Wednesday: What's Going On?

ASP Isotopes Inc ASPI shares are racing higher Wednesday after the company announced that it entered into a term sheet with nuclear company TerraPower.

What Happened: ASP Isotopes entered into a term sheet with TerraPower related to the construction of a uranium enrichment facility capable of producing High Assay Low-Enriched Uranium (HALEU).

The term sheet contemplates the preparation of definitive agreements under which TerraPower would provide funding for the construction of a HALEU production facility. 

“Over the last several decades, the scientists at ASP Isotopes have developed some of the world’s most advanced isotope enrichment technologies. This term sheet is further validation of our belief that ASP Isotopes can offer scalable and capital efficient technology solutions to the supply challenges which exist in global isotope markets” said Paul Mann, chairman and CEO of ASP Isotopes.

The term sheet contains non-binding and binding provisions, including a period of exclusivity in which ASP Isotopes will refrain from negotiating with third parties for the supply of HALEU and will not begin work on another ASP technology-based uranium enrichment facility.

ASP Isotopes and TerraPower also plan to enter into a long-term supply agreement for the HALEU expected to be produced at the facility. The agreement would require the customer to purchase all of the HALEU produced for a 10-year period following completion of the facility.

The definitive agreements are expected to be assigned to ASP Isotopes subsidiary Quantum Leap Energy. The company is also in discussions with financial institutions about additional capital for the facility. ASP Isotopes noted that all funding for the facility is expected to be non-dilutive to shareholders.

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ASPI Price Action: ASP Isotopes shares were up 56.5% at $8.85 at the time of publication, according to Benzinga Pro.

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