Comstock Inc. completed a $65 million face‑value convertible preferred stock transaction with its subsidiary Bioleum Corporation, restructuring a prior investment and adding a new capital instrument.
The preferred shares are convertible into 32.5 million common shares of Bioleum, representing a potential dilution of existing shareholders if converted. The conversion ratio reflects Bioleum’s current valuation and projected growth.
The transaction follows Comstock’s broader financial restructuring, which included the elimination of all debt instruments and an oversubscribed equity raise of $34.5 million in Q3 2025. The company aims to strengthen its balance sheet to fund expansion of its solar panel recycling business and renewable fuels venture.
Bioleum was spun off from Comstock’s renewable fuels segment in May 2025 to pursue independent growth. Since its separation, Bioleum has secured $20 million in Series A financing and a $13 million strategic investment from Marathon Petroleum subsidiaries, underscoring confidence in its technology.
Management highlighted that the convertible preferred stock provides flexibility for future capital needs while maintaining Comstock’s majority ownership of Bioleum. The company also noted that the conversion could occur at any time during the five‑year term, allowing Bioleum to access equity capital when it is most advantageous.
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