Nuvve Holding Corp. Announces Pricing of $9.6 Million Underwritten Public Offering
- Nuvve Holding Corp. is raising approximately $9.6 million through an underwritten public offering.
- The offering includes common stock and various series of warrants with an exercise price of $2.00 per share.
- The company aims to utilize the proceeds for the development and expansion of its globally-available, commercial vehicle-to-grid (V2G) technology platform.
- The closing of the offering is anticipated to occur soon, subject to customary closing conditions.
- None.
The announcement by Nuvve Holding Corp. regarding its public offering is a strategic move aimed at raising capital, which is a common practice for companies seeking to fund expansion, pay off debt, or invest in new projects. The gross proceeds of approximately $9.6 million, before underwriting discounts and commissions, suggest a moderate scale offering in terms of capital markets. The structure of the offering, including common stock and a series of warrants (A, B and C), is designed to attract a range of investors with different risk appetites and investment horizons.
The pricing of the warrants at $2.00, with varying expiration terms, could potentially dilute current shareholders but also provides them with the opportunity to increase their investment at a fixed price if they anticipate the company's value will grow over the term of the warrants. The relatively short term of the Series B Warrants (nine months) indicates a potential for near-term liquidity events or catalysts expected by the company. The conditional nature of the Series C Warrants, which are tied to the exercise of Series B Warrants, introduces a layer of complexity and a leveraged bet on the company's performance. Investors will need to carefully consider the implications of these terms and the potential for dilution against the company's future prospects.
For stakeholders, the short-term implications may include dilution of ownership, while the long-term implications could include strengthened financial positioning if the capital is effectively deployed. The offering's success will depend on investor confidence in Nuvve's technology and market potential, particularly in the burgeoning EV sector. The company's ability to contribute to the electric grid through V2G technology positions it within a niche yet growing segment of the green energy market.
The electric vehicle (EV) market and associated technologies like vehicle-to-grid (V2G) are rapidly evolving and Nuvve's offering indicates an attempt to capitalize on this growth. V2G technology allows EVs to interact with the power grid to accept and return energy, thereby providing a potential revenue stream to EV owners and stability to the power grid. This technology is particularly relevant as renewable energy sources, which can be intermittent, become more prevalent.
From a market perspective, the success of Nuvve's public offering and subsequent deployment of capital will hinge on the company's ability to execute its business plan and integrate its V2G solutions into the broader energy and transportation ecosystems. The demand for such technology is influenced by factors including the adoption rate of EVs, regulatory incentives for renewable energy storage and usage and advancements in battery technology. As a market research analyst, observing the competitive landscape is crucial, as larger players with more resources could enter the V2G space, posing a threat to Nuvve's market share.
Investors and stakeholders should monitor the company's strategic partnerships and any regulatory changes that could either bolster or hinder the adoption of V2G systems. The growth trajectory of the EV market, coupled with the push for smart grid technologies, suggests a favorable environment for Nuvve's offerings, provided the company maintains technological leadership and establishes strong industry connections.
Nuvve's focus on vehicle-to-grid technology places it at the intersection of the energy and automotive sectors, both of which are undergoing significant transformations. The ability of EV batteries to store and sell back energy to the grid is a disruptive innovation that can enhance the overall efficiency of the electric system, particularly as grids increasingly rely on renewable sources. The energy sector is moving toward a more distributed and interactive model and V2G technology is a key component of this shift.
As an energy sector analyst, it is important to assess the regulatory and technical challenges that Nuvve may face. Grid services require coordination with utility companies and adherence to regulatory standards, which can vary significantly by region. The capital raised through this offering could help Nuvve navigate these challenges, invest in R&D and scale up operations to meet potential demand. The company's performance will be a barometer for the V2G sector's viability.
Long-term benefits for stakeholders could include a more resilient grid system and new revenue streams for EV owners. However, potential drawbacks include the pace of regulatory change and the integration of V2G systems into existing grid infrastructures. Investors should consider the company's technological capabilities, regulatory environment and the speed at which the energy sector can adapt to these new technologies.
The offering is comprised of (i) 4,800,000 shares of common stock (or pre-funded warrants in lieu thereof), (ii) 4,800,000 Series A Warrants with an initial exercise price of
Craig-Hallum is acting as sole managing underwriter in connection with this offering.
The securities were offered pursuant to a registration statement on Form S-1 (File No. 333-276415), which was declared effective by the United States Securities and Exchange Commission ("SEC") on January 31, 2024.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The offering is being made solely by means of a prospectus. A preliminary prospectus relating to the proposed offering was filed with the SEC on January 26, 2024 and is available on the SEC's website located at http://www.sec.gov or may be obtained, from Craig-Hallum Capital Group LLC, Attention: Equity Capital Markets, 222 South 9th Street, Suite 350,
Nuvve Investor Contact
investorrelations@nuvve.com
+1 (619) 483-3448
Nuvve Press Contact
(W)right On Communications, Larry Smalheiser
lsmalheiser@wrightoncomm.com
+1 (925) 413-3137
About Nuvve Holding Corp.
Nuvve Holding Corp. (Nasdaq: NVVE) is a global leader in vehicle-to-grid (V2G) technology serving the mission-critical needs of commercial fleets. The company's intelligent, cloud-based software, Nuvve GIVe™, is a platform that transforms electric fleets into mobile storage resources allowing them to contribute, and not just consume, electricity. It enables a flexible suite of V2G, charge management and grid services that provide electric grid resilience while also generating recurring revenues to offset fleet operation costs. Committed to accelerating the planet's transition to a net-zero future, Nuvve is securing fleet electrification partners across the e-mobility and grid value chain and supports active deployments around the world with 18.3 megawatts currently under management. Nuvve is headquartered in San Diego, Calif., USA. To learn more about the value of V2G, futureproofing EV infrastructure and using EVs for grid resilience, visit nuvve.com.
Forward-Looking Statements
Statements contained in this press release regarding matters that are not historical facts are "forward-looking statements", including with respect to the public offering. No assurance can be given that the public offering discussed above will be completed. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Any forward-looking statements in this statement are based on management's current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. Risks that contribute to the uncertain nature of the forward-looking statements include, but are not limited to, those risks and uncertainties related to market and other conditions and satisfaction of customary closing conditions related to the public offering as well as those set forth in the Company's latest Annual Report on Form 10-K, quarterly report on Form 10-Q, registration statement on Form S-1 filed with the SEC and the preliminary prospectus included therein, and other filings made by the Company from time to time with the SEC. Copies of the registration statement can be accessed by visiting the SEC website at www.sec.gov. All forward-looking statements contained in this press release speak only as of the date on which they were made. The Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
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SOURCE Nuvve Corporation
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