LIQTECH INTERNATIONAL INC - What You Need to Know

Thinking about buying into the LiqTech International (LIQT) offering? It is exciting to get in on the ground floor, but let’s break down what is happening with their latest move before you invest your money.

1. What does this company actually do?

LiqTech is a clean technology company specializing in advanced silicon carbide (SiC) ceramic membranes. For over 20 years, they have manufactured high-strength, heat-resistant filters designed to remove oil, particles, and bacteria from water and gas.

The company applies this technology to commercial swimming pools, marine emission scrubbers, and industrial wastewater treatment. Their SiC membranes are designed to outperform traditional plastic or ceramic filters, particularly in harsh environments involving high heat or corrosive chemicals.

2. What is happening with this new offering?

On June 4, 2026, LiqTech began offering 20 million new shares at $1.00 per share.

The company is raising capital primarily to address cash flow challenges. They expect to receive approximately $18.6 million after accounting for fees and expenses, which they plan to allocate as follows:

• Debt Reduction: $3.0 million to pay off senior debt and $1.1 million to retire high-interest notes.
• Working Capital: The remaining funds are earmarked for daily operations, research, development, and sales efforts. The company did not provide a detailed breakdown of how these funds will be split between these categories.

3. What are the main risks I should worry about?

• Immediate Value Drop: You will experience "dilution." Because the company is issuing a large number of new shares, your percentage of ownership in the company decreases. Furthermore, the price you pay is higher than the accounting value of the company’s assets per share, meaning you are paying a premium over the current book value.
• The "Big Three" Control: Three major stockholders retain about 29% of the voting power. This gives them significant influence over major decisions, such as electing directors or approving mergers, which may not always align with the interests of smaller shareholders.
• Management’s "Blank Check": While the company has stated the money is for "working capital," management has broad discretion over how exactly that cash is spent. There is no guarantee that this spending will lead to a higher stock price or future profitability.
• Hidden Warrants: The underwriters (Konik Capital Partners) have received warrants to purchase additional shares. If these are exercised, it will further dilute your ownership and could exert downward pressure on the stock price.
• Price Manipulation: Underwriters have the ability to buy shares in the open market to "stabilize" the price. This can create artificial demand that masks the true market value of the stock. If this support is removed, the share price could drop quickly.

4. Important "Fine Print"

• Where to find the "Truth": Always refer to the official filings. You can find the company’s 2025 Annual Report and 2026 updates at www.sec.gov.
• Lock-up Periods: Executives and directors are prohibited from selling their shares for 90 days. Once this period expires, they may choose to sell their holdings, which could increase the supply of shares and drive the price down.
• No Dividends: The company has never paid a dividend and does not plan to do so in the foreseeable future. All available cash is being prioritized for debt repayment and operational survival.

5. A Final Reality Check

Investing in LiqTech is a high-risk proposition. You are essentially betting that their technology will gain traction as environmental regulations tighten, and that the company can transition from relying on debt and share offerings to becoming a self-sustaining, profitable business.

Bottom line: This offering is designed to stabilize the company’s finances, not necessarily to fund a major growth phase. Before you commit your money, make sure you read the "Risk Factors" section of the official prospectus—it contains the specific hurdles the company believes could prevent them from succeeding.

Disclaimer: I am an AI, not a financial advisor. This guide is for informational purposes only and does not constitute financial advice. Always do your own research or consult with a qualified professional before making investment decisions.