Stardust Power secures up to $10 million equity financing facility

Stardust Power Inc. (NASDAQ: SDST) announced it has secured up to $10 million in common equity financing through an agreement with B. Riley Principal Capital II, LLC. The facility allows the lithium carbonate developer to raise capital over a 36-month period at its discretion.

Under the agreement, Stardust Power can sell shares of its common stock to B. Riley over three years without obligation to do so. The structure enables the company to raise capital incrementally and align funding with business needs, according to the company's statement.

The company plans to use proceeds from potential sales for pre-construction and construction activities, long-term growth objectives, working capital and general corporate purposes. The facility includes ownership limitations, Nasdaq compliance thresholds and pricing protections.

"This facility provides Stardust Power with a flexible capital tool as we advance a strategically important U.S. lithium project," said Roshan Pujari, founder and CEO of Stardust Power. "It allows us to strengthen our balance sheet on our terms, while remaining disciplined and opportunistic in how and when we access the capital markets."

The company filed a registration statement on Form S-1 with the Securities and Exchange Commission on February 12, which was declared effective on February 17, for the resale of securities B. Riley may purchase under the facility.

Stardust Power is developing a lithium refinery in Muskogee, Oklahoma, designed to produce up to 50,000 metric tons of battery-grade lithium carbonate annually.

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