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Elong Power Holding Limited Announces Pricing of US$7.0 Million Public Offering

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Elong Power (Nasdaq: ELPW) priced an underwritten public offering of 21,700,000 Units at US$0.3231 per Unit, raising approximately US$7.0 million in gross proceeds. Each Unit includes one Class A ordinary share and one common warrant exercisable for one share.

The Company expects closing on February 27, 2026, may grant a 45-day overallotment for up to 3,255,000 additional shares/warrants, and plans to use proceeds for working capital, sales network expansion, and production capacity upgrades.

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Positive

  • Gross proceeds of approximately US$7.0 million
  • Proceeds earmarked for sales network expansion and hiring
  • Planned production and capacity upgrades with new equipment

Negative

  • Issuance of 21.7 million Units may cause substantial dilution
  • Common warrants allow a zero exercise price option to double shares
  • Underwriters granted 45-day option for up to 3.255 million additional shares

News Market Reaction – ELPW

-54.81%
56 alerts
-54.81% Session close to close
-67.8% Trough in 32 hr 30 min
$2.13M Market Cap
1.3x Rel. Volume

In the Feb 26 session, ELPW declined 54.81%, reflecting a significant negative market reaction. Argus tracked a trough of -67.8% from its starting point during tracking. Our momentum scanner triggered 56 alerts that day, indicating high trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock dropped -54.8% in the session following this news. A negative reaction despite the cash in...
Analysis

The stock dropped -54.8% in the session following this news. A negative reaction despite the cash inflow fits a pattern where equity offerings with warrant-heavy structures have coincided with sharp downside moves. The new US$7.0 million unit deal, with three-year warrants, resettable exercise prices, and a zero exercise price option, adds to recent financings and follows a major reverse split and Nasdaq compliance challenges. Historically, offering-related news averaged a -14.65% move, so weakness around such announcements would not have been unprecedented.

Key Figures

Offering size: 21,700,000 Units Unit price: US$0.3231 per Unit Gross proceeds: US$7.0 million +5 more
8 metrics
Offering size 21,700,000 Units Underwritten public offering on firm commitment basis
Unit price US$0.3231 per Unit Pricing of new public offering
Gross proceeds US$7.0 million Expected before underwriting discounts and expenses
Warrant term 3 years Common Warrants expire three years from issuance
Warrant exercise price US$0.3231 per share Initial exercise price, subject to later adjustments
Reset levels 70% and 50% of initial Exercise price resets on 2nd and 5th trading days
Over-allotment window 45 days Underwriters’ option period for additional securities
Additional securities 3,255,000 shares and 3,255,000 warrants Maximum underwriters’ over-allotment option

Previous Offering Reports

2 past events · Latest: Feb 03 (Neutral)
Same Type Pattern 2 events
Date Event Sentiment 24h Move Catalyst
Feb 03 Offering closing Neutral +61.1% Closed US$7.6M unit offering with three-year warrants and resets.
Feb 02 Offering pricing Neutral -90.4% Priced US$7.6M unit offering with resettable common warrants.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent offering-related news produced volatile moves, with an average same-tag reaction of -14.65% across the last two events.

Recent Company History

Over the past several months, Elong Power has repeatedly used unit offerings with attached warrants to raise capital, including a US$7.6M deal at US$3.16 per unit in early February 2026. These financings featured resettable warrant terms and zero-cash exercise options. Alongside this, the company executed a 16-for-1 reverse split to address Nasdaq bid-price issues and received deficiency notices in October 2025. Today’s offering pricing continues the pattern of capital raises with warrant-heavy structures following recent registration activity.

Key Terms

underwritten public offering, common warrant, zero exercise price option, firm commitment basis, +4 more
8 terms
underwritten public offering financial
"announced the pricing of its underwritten public offering (the "Offering") of 21,700,000 Units"
An underwritten public offering is when a company sells new shares of its stock to the public with the help of a financial firm, called an underwriter. The underwriter agrees to buy all the shares upfront, reducing the company's risk, and then sells them to investors. This process helps companies raise money quickly and confidently from a wide range of buyers.
common warrant financial
"and one common warrant (each a "Common Warrant") to purchase one Class A Ordinary Share"
A common warrant is a tradable security that gives its holder the right to buy a company’s common shares at a preset price for a limited time. It matters to investors because exercising warrants can dilute existing ownership and create leverage: holders can benefit if the stock rises above the preset price, while holders of original shares face potential reduction in their percentage stake, similar to more tickets being added to a raffle.
zero exercise price option financial
"be exercised in whole or in part by means of a zero exercise price option"
A zero exercise price option is a stock option that lets the holder convert the option into shares without paying any cash upfront because the strike price is set at zero. For investors, these awards act like immediate share grants: they increase the company’s outstanding shares (dilution), are treated as employee compensation for accounting and tax purposes, and signal how management is being paid, which can affect future earnings and shareholder value.
firm commitment basis financial
"21,700,000 Units on a firm commitment basis, at a price of US$0.3231 per Unit"
An agreement in which an underwriter agrees to buy an entire new stock or bond offering from a company and then resell it to the public, taking full responsibility for any unsold shares. Think of the underwriter as a store that buys all the inventory up front: this guarantees the company gets the money and gives investors certainty the deal will happen, while the underwriter’s risk and pricing choices can affect short‑term share availability and price stability.
registration statement on F-1 regulatory
"A registration statement on F-1 (File No. 333-293527) was filed with the U.S. Securities"
A registration statement on Form F-1 is a formal filing with the U.S. Securities and Exchange Commission that a non‑U.S. company submits when it plans to offer securities to U.S. investors, often as part of an initial public offering. It provides the company’s business description, audited financials and risk factors so investors can evaluate the opportunity—think of it as a detailed blueprint or prospectus that helps buyers understand what they are getting into before putting money down.
prospectus regulatory
"The Offering is being made only by means of a prospectus forming part of the effective"
A prospectus is a detailed document that explains a company's plans for offering new shares or investments to the public. It’s important because it provides potential investors with key information about the company’s business, risks, and how they might make money, helping them decide whether to invest. Think of it as a guidebook for understanding what you're buying into.
U.S. Securities and Exchange Commission regulatory
"was filed with the U.S. Securities and Exchange Commission ("SEC") and was declared"
The U.S. Securities and Exchange Commission is a government agency responsible for overseeing the stock market and protecting investors. It sets rules to ensure that companies share truthful information and that trading is fair, helping to maintain trust in the financial system. This oversight is important because it helps prevent fraud and ensures that investors can make informed decisions.
public offering price financial
"Common Warrants, at its respective public offering price less underwriting discounts"
The public offering price is the amount of money a company charges investors to buy its shares during a new stock sale to the public. It determines how much the company raises and how much each share is worth at the start of trading. For investors, it helps gauge the initial value of the stock and whether it might be a good investment opportunity.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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BEIJING, Feb. 26, 2026 /PRNewswire/ -- Elong Power Holding Limited (Nasdaq: ELPW) ("Elong Power" or the "Company"), a provider of high power battery technologies for commercial and specialty alternative energy vehicles and energy storage systems, today announced the pricing of its underwritten public offering (the "Offering") of 21,700,000 Units on a firm commitment basis, at a price of US$0.3231 per Unit. Each Unit consists of one Class A ordinary share, par value of US$0.00016 per share (each a "Class A Ordinary Share"), of the Company and one common warrant (each a "Common Warrant") to purchase one Class A Ordinary Share. Gross proceeds to the Company, before deducting underwriting discounts and other offering expenses, are expected to be approximately US$7.0 million.

Each Common Warrant will expire three years from the date of issuance, and is exercisable immediately on the date of issuance at an exercise price of US$0.3231 per share, subject to adjustment on the 2nd and 5th trading days following the closing of this Offering to the price that is equal to 70% and 50%, respectively, of the initial exercise price of the Common Warrants, and the number of Class A Ordinary Shares underlying the Common Warrants will be proportionately increased. The Common Warrants may, at any time following the closing of this Offering and in the holders' sole discretion, be exercised in whole or in part by means of a zero exercise price option, in which the holders will receive twice the number of Class A Ordinary Shares that would be issuable upon a cash exercise of the Common Warrant, without payment of additional consideration.

The Offering is expected to close on February 27, 2026, subject to customary closing conditions. The Company intends to use the proceeds from the Offering for 1) general corporate purposes and working capital, 2) sales network expansion, including the hiring of sale personnel and the development of regional sales channels, and 3) expansion of production and capacity, including new equipment and upgrades to its manufacturing facilities.

The Company has granted the underwriters a 45-day option to purchase up to an additional 3,255,000 Class A Ordinary Shares and/or additional 3,255,000 Common Warrants, at its respective public offering price less underwriting discounts and commissions.

Maxim Group LLC is acting as the exclusive underwriter. Ortoli Rosenstadt LLP is acting as U.S. securities counsel to the Company, and Pryor Cashman LLP is acting as U.S. securities counsel to the underwriter, in connection with the Offering.

A registration statement on F-1 (File No. 333-293527) was filed with the U.S. Securities and Exchange Commission ("SEC") and was declared effective by the SEC on February 25, 2026. The Offering is being made only by means of a prospectus forming part of the effective registration statement. A final prospectus relating to the Offering will be filed with the SEC and will be available on the SEC's website at www.sec.gov.

This press release has been prepared for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any securities, and no sale of these securities may be made in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Elong Power

Elong Power Holding Limited, a Cayman Islands exempted company, is committed to the research and development, manufacturing, sales and service of high-power lithium-ion batteries for electric vehicles and construction machinery, as well as large-capacity, long-cycle lithium-ion batteries for energy storage systems. Elong Power is led by Ms. Xiaodan Liu, Elong Power's Chairwoman and CEO.

Elong Power has a comprehensive product and technology system that includes battery cells, modules, system integration, and battery management system development, based on high-power lithium-ion batteries and battery system products for long-cycle energy storage devices. Elong Power offers advanced energy applications and full life cycle services. Its product portfolio includes products utilizing lithium manganese oxide and lithium iron phosphate, among others, to meet the needs of high-power applications and energy storage applications in various scenarios.

Forward-looking Statements

This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding the benefits of the transaction, the anticipated timing of the transaction, the products offered by Elong Power and the markets in which it operates, and Elong Power's projected future results. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including, but not limited to: the ability of Elong Power to maintain the listing of its securities on Nasdaq; the fact that the price of Elong Power's securities may be volatile due to a variety of factors, including changes in the competitive and highly regulated industries in which Elong Power operates; variations in performance across competitors; changes in laws and regulations affecting Elong Power's business and changes in its capital structure; the ability to implement business plans, meet forecasts and other expectations; its need for substantial additional funds; the parties' dependence on third-party suppliers; risks relating to the results of research and development activities, market and other conditions; its ability to attract, integrate, and retain key personnel; risks related to its growth strategy; risks related to patent and intellectual property matters; and the ability to obtain, perform under and maintain financing and strategic agreements and relationships. Accordingly, these forward-looking statements do not constitute guarantees of future performance, and you are cautioned not to place undue reliance on these forward-looking statements. Risks regarding Elong Power's business are described in detail in Elong Power's SEC filings which are available on the SEC's website at www.sec.gov, including in Elong Power's Annual Report on Form 20-F and Elong Power's subsequent filings with the SEC. These forward-looking statements speak only as of the date hereof, and Elong Power expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions, or circumstances on which any such statement is based, except as required by law.

For investor and media inquiries, please contact:

Elong Power Investor Contact

ir@elongpower.com 

Cision View original content:https://www.prnewswire.com/news-releases/elong-power-holding-limited-announces-pricing-of-us7-0-million-public-offering-302698360.html

SOURCE Elong Power Holding Limited

FAQ

What did Elong Power (ELPW) price in its February 26, 2026 public offering?

Elong Power priced 21,700,000 Units at US$0.3231 per Unit, raising about US$7.0 million in gross proceeds. According to the company, each Unit includes one Class A ordinary share and one common warrant exercisable for one share.

How will Elong Power (ELPW) use the US$7.0 million from the offering?

The company will use proceeds for working capital, sales network expansion, and capacity upgrades. According to the company, funds target hiring sales personnel and upgrading manufacturing equipment and facilities.

What are the warrant terms tied to ELPW Units issued on February 26, 2026?

Each common warrant expires three years after issuance and is initially exercisable at US$0.3231 per share. According to the company, exercise price and share counts adjust on the 2nd and 5th trading days after closing.

Could the ELPW offering cause additional shareholder dilution after closing?

Yes. The offering issues 21.7 million Units and grants a 45-day option for up to 3.255 million more shares/warrants. According to the company, warrant mechanics could further increase outstanding shares.

When is the ELPW offering expected to close and who is the underwriter?

The offering is expected to close on February 27, 2026, subject to customary conditions. According to the company, Maxim Group LLC is acting as the exclusive underwriter for the transaction.