The ATM offering creates persistent overhang — any rally will likely be sold into as Wainwright executes sales. Monitor daily volume and 6-K filings for actual share sales. The stock is trading near $0.96, well below the $1.43 reference price, and the 14.4M warrants at $11.50 are deeply out of the money. The Q1 2026 revenue growth (+36% to $14.6M) and net income of $1.9M provide fundamental support, but the ATM overhang will cap upside until the offering is completed or the stock finds a floor.
Price Chart
Executive Summary
FST Corp. filed a 424B5 prospectus supplement for an at-the-market (ATM) offering of up to $10.4M in ordinary shares through H.C. Wainwright. The stock closed at $0.9649 on July 1, 2026, well below the $1.43 reference price from May 18, 2026, and the offering represents up to ~24% dilution of the current 44.8M share base. The company reported strong Q1 2026 results (net sales +36% to $14.6M, net income of $1.9M vs. prior-year loss), but the ATM offering at a depressed stock price signals near-term selling pressure and potential further downside.
Key Facts
- ATM offering of up to $10.4M in ordinary shares via H.C. Wainwright, filed July 2, 2026
- Stock closed at $0.9649 on July 1, 2026, down 33% from the $1.43 reference price used for public float calculation on May 18, 2026
- Up to 10.78M new shares at $0.9649 would represent ~24% dilution of the current 44.8M share base
- Wainwright receives 3.0% commission on gross proceeds; no minimum offering amount
- Net tangible book value per share is $0.27; new investors face ~$0.5649 per share dilution at assumed price
- 14.4M warrants outstanding at $11.50/share exercise price — deep out of the money and unlikely to be exercised
- Q1 2026 net sales grew 36% YoY to $14.6M with net income of $1.9M vs. prior-year loss; gross margin improved to 51.6%
Financial Impact
Up to $10.4M in gross proceeds from ATM offering; ~24% dilution of current share count at $0.9649/share; new investors face $0.5649 per share dilution from $0.27 net tangible book value
Risk Factors
- ATM offering creates persistent overhang — any rally will be sold into by Wainwright executing the program
- Stock at $0.9649 is down 33% from the $1.43 reference price used for public float calculation, signaling weak market sentiment
- Up to 24% dilution from the ATM alone, plus 14.4M warrants at $11.50 (deeply out of the money) represent additional overhang
- Nasdaq continued listing risk if bid price falls below $1.00 for 30 consecutive days
- Broad discretion over use of proceeds — no specific allocation to value-creating activities
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 424B5 Filing (Primary) | 0001213900-26-074755 |
| Document: 0001213900-26-074755-index-headers.html | 0001213900-26-074755 |
| Document: 0001213900-26-074755-index.html | 0001213900-26-074755 |
| Document: 0001213900-26-074755.txt | 0001213900-26-074755 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 28, 2026 12w ago | 6-K | $0.8900 $1.45 | ▲ +62.92% | ▲ +58.19% | $1.36 (+52.81%) |
Jul 7, 2026 15w ago | 6-K | $0.9668 $1.64 | ▼ −69.63% | ▼ −67.43% | $1.36 (−40.67%) |
Jul 2, 2026 16w ago | 424B5 | $0.9501 $1.50 | ▼ −57.88% | ▼ −54.87% | $1.36 (−43.14%) |
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