Energy Services of America Corporation Announces Closing of Overallotment Option and Issuance of 261,000 Shares of Common Stock

Rhea-AI Summary

Energy Services of America (NASDAQ:ESOA) said the underwriter exercised its overallotment option, issuing 261,000 additional shares at the public offering price of $11.50 per share.

After underwriting discounts and commissions but before other expenses, the company expects approximately $2.8 million in proceeds. Lake Street Capital Markets served as sole underwriter and Roth Capital Partners acted as financial advisor. The offering was made under a shelf registration on Form S-3 (File No. 333-280025).

Positive

• Raised approximately $2.8 million in net proceeds
• Completed full overallotment: 261,000 shares issued
• Sole underwriter engagement with Lake Street Capital Markets

Negative

• Share dilution from issuance of 261,000 additional shares
• Underwriting discount and commissions reduced proceeds

News Market Reaction – ESOA

+10.04%

14 alerts

+10.04% News Effect

+9.5% Peak in 29 hr 1 min

+$24M Valuation Impact

$262M Market Cap

1.1x Rel. Volume

On the day this news was published, ESOA gained 10.04%, reflecting a significant positive market reaction. Argus tracked a peak move of +9.5% during that session. Our momentum scanner triggered 14 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $24M to the company's valuation, bringing the market cap to $262M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Additional shares issued: 261,000 shares Offering price: $11.50 per share Net proceeds: $2.8 million +5 more

8 metrics

Additional shares issued 261,000 shares Overallotment option exercise in public offering

Offering price $11.50 per share Public offering and overallotment shares

Net proceeds $2.8 million Proceeds from overallotment exercise after underwriter fees

Price change -4.57% Move prior to news publication

52-week range $7.64 – $14.915 Low and high before this announcement

Price vs 52-week high -4.53% Distance from high before news

Market cap $225,896,569 Equity value prior to this news

Volume multiple 1.13x Today’s volume vs 20-day average

Market Reality Check

Price: $14.21 Vol: Volume 436,371 is above t...

normal vol

$14.21 Last Close

Volume Volume 436,371 is above the 20-day average of 385,277, indicating elevated trading interest ahead of this offering update. normal

Technical Shares at $14.24 are 4.53% below the 52-week high of $14.915 and trading above the 200-day MA of $9.93, reflecting a strong longer-term uptrend despite the pullback.

Peers on Argus

ESOA fell 4.57% while peers were mixed: ONEG (-3.39%), MIMI (-1.64%), SKBL (-2.9...

1 Down

ESOA fell 4.57% while peers were mixed: ONEG (-3.39%), MIMI (-1.64%), SKBL (-2.9%) declined, but SLND gained 5.27% and SHIM rose 0.58%. Only one peer (MIMI) appeared on the momentum scanner, supporting a stock-specific reaction to ESOA’s equity issuance news.

Historical Context

5 past events · Latest: Feb 19 (Negative)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 19	Equity offering priced	Negative	-8.1%	Underwritten common stock offering priced with $20M gross proceeds and option.
Feb 18	Equity offering proposed	Negative	+1.5%	Proposed public offering of common stock with 30-day underwriter option.
Feb 09	Q1 2026 earnings	Positive	+0.8%	Strong Q1 revenue growth, higher margins, and backlog increase to $301.4M.
Dec 09	FY2025 results	Neutral	+1.7%	Record revenue but weaker profit and margins, plus acquisitions and dividend hike.
Nov 13	Investor conference	Neutral	-6.3%	Announcement of participation in Southwest IDEAS investor conference.

Pattern Detected

Recent capital-raising announcements have drawn volatile reactions, including a sharp -8.14% move on the Feb 19 offering pricing, while fundamentally positive earnings and backlog updates have seen modest positive responses.

Recent Company History

Over the past few months, ESOA combined strong operating updates with equity issuance activity. On Feb 9, 2026, it reported Q1 revenue of $114.1M, gross margin of 12.3%, net income of $2.7M, and backlog of $301.4M, which saw a mild gain. Later, fiscal 2025 results on Dec 9, 2025 showed record $130.1M Q4 revenue but weaker profitability. In mid-February 2026, ESOA launched and priced a $20.0M common stock offering with an option for 261,000 extra shares, which previously triggered an -8.14% decline, framing today’s overallotment exercise within an ongoing capital-raising phase.

Market Pulse Summary

The stock surged +10.0% in the session following this news. A strong positive reaction aligns with E...

Analysis

The stock surged +10.0% in the session following this news. A strong positive reaction aligns with ESOA’s position near its 52-week high and above its 200-day MA, but past offerings saw pressure, including a -8.14% move on the Feb 19 pricing. Investors would have balanced fresh capital of about $2.8M from 261,000 extra shares against dilution risk and historically high volume, which can limit sustainability once short-term demand or covering activity normalizes.

Key Terms

overallotment option, underwriter, shelf registration statement, form s-3, +2 more

6 terms

overallotment option financial

"underwriter for its recently completed public offering has exercised its overallotment option"

An overallotment option (often called a "greenshoe") is a pre-arranged allowance for underwriters to sell or buy up to a specified extra percentage of a company’s shares during an offering to meet unexpected demand or support the share price. Think of it as a short-term buffer: it helps reduce wild swings right after shares start trading but can slightly increase the total shares outstanding if the option is exercised, which matters to investors because it affects supply, price stability, and potential dilution.

underwriter financial

"the underwriter for its recently completed public offering has exercised its overallotment option"

An underwriter is a financial firm that evaluates, guarantees and helps sell a new security offering—such as a stock or bond—by buying the issue from the issuer and reselling it to investors or organizing the sale. Think of them as a bridge or safety net: they take on the risk, set the price, handle marketing and paperwork, and their work determines how much money a company can raise and how smoothly the offering reaches the market.

shelf registration statement regulatory

"The offering was made only by means of an effective shelf registration statement on Form S-3"

A shelf registration statement is a document a company files with regulators that allows it to sell shares or bonds quickly when it’s a good time to raise money. It’s like having a pre-approved plan ready so the company can act fast without going through lengthy paperwork each time they want to sell, making fundraising more flexible.

form s-3 regulatory

"effective shelf registration statement on Form S-3 (File No. 333-280025)"

Form S-3 is a legal document companies use to register their stock sales with the government, making it easier and faster for them to raise money by selling shares to investors. It’s like having a pre-approved shopping list that lets a company quickly sell new shares when they need funds, without going through a lengthy approval process each time.

prospectus supplement regulatory

"including a preliminary prospectus supplement and final prospectus supplement, copies of which may be obtained"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

edgar regulatory

"may be obtained for free by visiting EDGAR on the SEC website at www.sec.gov"

EDGAR is a system used by companies to share important financial and business information with the public. It functions like an online filing cabinet where investors can access official reports and documents that help them understand a company's financial health and operations. This transparency allows investors to make more informed decisions, much like checking a company's report card before investing.

AI-generated analysis. Not financial advice.

HUNTINGTON, W.Va., Feb. 24, 2026 /PRNewswire/ -- Energy Services of America Corporation (the "Company"), today announced that the underwriter for its recently completed public offering has exercised its overallotment option and completed the sale of an additional 261,000 shares of common stock at the public offering price of $11.50 per share. The proceeds to the Company in connection with the exercise of the option and the issuance of the additional shares, after deducting the underwriting discount and commissions but before deducting other expenses payable by the Company, are approximately $2.8 million.

Lake Street Capital Markets, LLC served as the sole underwriter for the offering.

Roth Capital Partners acted as financial advisor to the Company for the offering.

The offering was made only by means of an effective shelf registration statement on Form S-3 (File No. 333-280025), including a preliminary prospectus supplement and final prospectus supplement, copies of which may be obtained for free by visiting EDGAR on the SEC website at www.sec.gov. Additionally, electronic copies may be obtained from Lake Street Capital Markets, LLC, Attn: Syndicate Department, 121 S 8th St, Suite 1000, Minneapolis, MN 55402, by calling (612) 326-1305, or by emailing syndicate@lakestreetcm.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities 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 jurisdiction. 

About Energy Services of America Corporation

Energy Services of America Corporation (NASDAQ: ESOA), headquartered in Huntington, WV, is a contractor and service company that operates primarily in the mid-Atlantic and Central regions of the United States and provides services to customers in the natural gas, petroleum, water distribution, automotive, chemical, and power industries. Energy Services employs 1,500+ employees on a regular basis. The Company's core values are safety, quality, and production.

Forward-Looking Statements

The information disclosed in this press release includes various forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "anticipates," "projects," "intends," "estimates," "expects," "believes," "plans," "may," "will," "should," "could," and other similar expressions are intended to identify such forward-looking statements. The Company cautions that these forward-looking statements are necessarily speculative and speak only as of the date made, and are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from such forward-looking statements. Accordingly, you should not place undue reliance on forward-looking statements. In addition to the specific risk factors disclosed in the Company's Annual Report on Form 10-K for the year ended September 30, 2025, the following factors, among others, could cause actual results to differ materially and adversely from such forward-looking statements: projected revenues, net income, earnings per share, margins, cash flows, liquidity, weighted average shares outstanding, capital expenditures, tax rates and other projections of operating or financial results; expectations regarding our business or financial outlook; expectations regarding opportunities, trends and economic and regulatory conditions in particular markets or industries; expectations regarding our plans and strategies; the business plans or financial condition of our customers; the potential impact of commodity prices and commodity production volumes on our business, financial condition, results of operations and cash flows and demand for our services; the potential benefits from, and future performance of, acquired businesses and our investments; beliefs and assumptions about the collectability of receivables; the expected value of contracts or intended contracts with customers, as well as the scope, services, term or results of any awarded or expected projects; the development of and opportunities with respect to future projects, including pipeline projects; future capital allocation initiatives, including the amount, timing and strategies with respect to any future stock repurchases, and expectations regarding the declaration, amount and timing of any future cash dividends; the impact of existing or potential legislation or regulation; potential opportunities that may be indicated by bidding activity or similar discussions with customers; the future demand for and availability of labor resources in the industries we serve; the expected realization of remaining performance obligations or backlog; the expected outcome of pending or threatened legal proceedings. The Company does not undertake and specifically declines any obligation to publicly release the results of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

View original content to download multimedia:https://www.prnewswire.com/news-releases/energy-services-of-america-corporation-announces-closing-of-overallotment-option-and-issuance-of-261-000-shares-of-common-stock-302696165.html

SOURCE Energy Services of America Corporation

FAQ

How many additional shares did Energy Services of America (ESOA) issue on Feb 24, 2026?

The company issued 261,000 additional shares under the underwriter's overallotment option. According to the company, those shares were sold at $11.50 per share as part of the completed public offering.

What proceeds did ESOA receive from the overallotment exercise on Feb 24, 2026?

ESOA expects approximately $2.8 million in proceeds after underwriting discounts and commissions. According to the company, that figure is before deducting other offering-related expenses.

Who served as underwriter and financial advisor for ESOA's offering completed Feb 24, 2026?

Lake Street Capital Markets served as the sole underwriter and Roth Capital Partners was financial advisor. According to the company, Lake Street handled syndicate distribution and investor allocations.

At what price were ESOA's additional shares sold in the Feb 24, 2026 overallotment?

The additional shares were sold at $11.50 per share, the public offering price. According to the company, that price matched the recently completed public offering terms.

Where can investors find the registration and prospectus for ESOA's Feb 2026 offering?

Copies are available on the SEC EDGAR site under Form S-3 (File No. 333-280025) and from Lake Street Capital Markets. According to the company, electronic and paper prospectuses may be obtained free of charge.