ASP Isotopes Inc. (NASDAQ: ASPI) announced it has entered into private exchange agreements with certain holders of convertible promissory notes issued by its subsidiary, Quantum Leap Energy LLC (QLE), under which approximately $109.2 million in aggregate principal of QLE notes will be exchanged for roughly 23.2 million shares of ASPI common stock.

The shares issued in the transaction represent approximately 17.8% of ASPI's common stock outstanding. The exchange is expected to close July 16, 2026, subject to customary closing conditions.

Upon closing, QLE's outstanding convertible note balance will be reduced by approximately 50%, from $219.8 million to $110.7 million in aggregate principal amount. The transaction also covers accrued and unpaid interest on the exchanged notes.

ASPI said the exchange is intended to simplify QLE's capital structure as the subsidiary pursues a standalone public listing on a U.S. national securities exchange. The company also noted the transaction is expected to support a potential future distribution of QLE common equity to ASPI stockholders, with a record date to be determined.

"The exchange significantly strengthens QLE's balance sheet, reducing its convertible notes by approximately 50% and simplifying its capital structure at the right moment as QLE continues its path towards a separate public listing," said Paul Mann, Chairman and Chief Executive Officer of ASPI. "We structured the exchange to be broadly economically neutral to both ASPI stockholders and QLE noteholders."

QLE is a wholly-owned ASPI subsidiary focused on uranium conversion, uranium-235 enrichment, and isotopic separation technologies for the nuclear fuel cycle. The information in this article is based on a press release issued by ASP Isotopes Inc.