Elong Power Holding Limited (NASDAQ:ELPW) stock plunged Friday after the company priced a public offering at 40 cents per unit, raising fresh capital while increasing dilution concerns for existing shareholders.
Public Offering Priced
Elong Power said Friday it priced a registered public offering that is expected to generate about $6.6 million in gross proceeds before underwriting fees and other offering expenses.
The Beijing-based lithium battery energy storage company is offering 16.5 million units on a best-efforts basis at 40 cents per unit. Each unit consists of one Class A ordinary share, or one pre-funded warrant in place of a share, and one common warrant to buy one additional Class A ordinary share.
The common warrants are exercisable immediately at an initial exercise price of 40 cents per share, matching the public offering price. The warrants will expire three years after issuance. They also include customary anti-dilution protections covering stock splits, share combinations, dividend distributions, future equity sales and certain corporate restructurings.
The offering is expected to close on July 13, subject to customary closing conditions.
What Elong Power Does
Elong Power develops lithium-ion battery energy storage systems and related solutions. The company serves residential, commercial and industrial energy storage markets outside China while also supplying grid-side energy storage projects in China.
The company follows an asset-light operating model and focuses on research and development, along with AI-enabled energy storage technologies. Chief Executive Officer Xiaodan Liu leads the company.
ELPW Price Action: Elong Power Holding shares were down 50.51% at $0.28 at the time of publication on Friday, according to Benzinga Pro data.
Photo via Shutterstock
