Tecogen Inc. Announces Closing of Underwritten Public Offering

Rhea-AI Summary

Tecogen (NYSE American:TGEN) has successfully closed its underwritten public offering of 3,985,000 shares of common stock at $5.00 per share, including the full exercise of the underwriter's option for an additional 485,000 shares. The offering generated gross proceeds of approximately $19.9 million.

The company plans to utilize the net proceeds for product development, expanding sales and marketing efforts, hiring additional personnel, and capital expenditures, with a particular focus on expansion into the data center market. Roth Capital Partners LLC served as the sole manager and underwriter for the offering.

Positive

• Raised significant capital of $19.9 million through public offering
• Full exercise of underwriter's option indicates strong demand
• Strategic expansion planned into data center market
• Funds allocated for product development and business growth

Negative

• Potential dilution for existing shareholders due to 3.985 million new shares
• Additional expenses from underwriting discounts and offering costs will reduce net proceeds

Insights

Financial Analyst

Tecogen secured nearly $20M in capital, strengthening its balance sheet and funding data center market expansion plans.

Tecogen's $19.9 million public offering represents a significant capital raise for a company that's positioning itself strategically in the clean energy sector. The full exercise of the underwriter's option to purchase additional shares signals strong institutional interest in the offering. At $5.00 per share, this offering increases the company's outstanding share count by 3.98 million shares.

The capital infusion provides Tecogen with substantial financial flexibility to execute on multiple growth initiatives. Most notably, the company has explicitly earmarked these funds to support expansion into the data center market – a high-growth sector with increasing power demands and sustainability requirements. Data centers are intensive energy consumers seeking both reliability and reduced carbon footprints, making them natural targets for Tecogen's clean energy solutions.

Beyond the data center initiative, the allocation toward product development, sales/marketing, and human resources indicates a comprehensive growth strategy. The timing of this capital raise appears strategic, providing Tecogen with sufficient runway to fund these expansion efforts without immediate financial constraints.

The successful completion of this offering strengthens Tecogen's balance sheet considerably and provides a foundation for accelerated growth. While the offering does create dilution for existing shareholders, the capital infusion positions the company to potentially achieve valuation growth that could offset this dilution through successful execution of its expansion plans.

NORTH BILLERICA, MA / ACCESS Newswire / July 21, 2025 / Tecogen Inc. ("Tecogen" or "Company"), (NYSE American:TGEN), a leading manufacturer of clean energy products, today announced the closing of its previously announced underwritten public offering of 3,985,000 shares of common stock, including the full exercise by the underwriter of its option to purchase an additional 485,000 shares, at a public offering price of $5.00 per share. The gross proceeds from the offering to Tecogen before deducting underwriting discounts and commissions and other offering expenses were approximately $19,925,000.

Roth Capital Partners LLC acted as sole manager and underwriter for the offering.

Tecogen intends to use the net proceeds from the offering for continued product development, increased sales and marketing activities, sales, marketing, additional human resources, capital expenditures, and other costs and expenses it may incur in connection with its anticipated expansion into the data center market, and for general working capital and corporate purposes.

The securities described above are being offered pursuant to a Registration Statement on Form S-1 (File No. 333-288668), that was filed with the Securities and Exchange Commission ("SEC") on July 15, 2025, as amended, and a Registration Statement on Form S-1 filed with the SEC pursuant to Rule 462(b) under the Securities Act. The offering was made by means of a written preliminary prospectus that forms a part of the registration statement. A final prospectus relating to the offering has been filed with the SEC and is available on the SEC's website at www.sec.gov and may also be obtained by contacting Roth Capital Partners, LLC, at 888 San Clemente Drive, Newport Beach, CA 92660, telephone (800) 678-9147 or by email at rothecm@roth.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities being offered, nor shall there be any sale of the securities being offered in any state or other jurisdiction in which such offer, solicitation, or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Tecogen

Tecogen Inc. designs, manufactures, sells, installs, and maintains high efficiency, ultra-clean, cogeneration products including engine-driven combined heat and power, air conditioning systems, and high-efficiency water heaters for residential, commercial, recreational and industrial use. The company provides cost effective, environmentally friendly and reliable products for energy production that nearly eliminate criteria pollutants and significantly reduce a customer's carbon footprint. In business for over 35 years, Tecogen has shipped more than 3,200 units, supported by an established network of engineering, sales, and service personnel in key markets in North America. For more information, please visit www.tecogen.com.

Forward Looking Statements

This press release contains "forward-looking statements" which may describe strategies, goals, outlooks or other non-historical matters, or projected revenues, income, returns or other financial measures, that may include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "target," "potential," "will," "should," "could," "likely," or "may" and similar expressions intended to identify forward-looking statements. Tecogen intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors and actual results may differ from those indicated by those forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements.

Important factors that could cause the actual results to differ materially from those indicated in the forward looking statements include the risks and uncertainties described in our Annual Report on Form 10-K for the year ended December 31, 2024, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, and in our Current Reports on Form 8-K, under "Risk Factors," and elsewhere therein and in the registration statement and prospectus relating to the offering. Forward-looking statements speak only as of the date on which they are made. Tecogen undertakes no obligation to update or revise any forward-looking statements except as required under applicable law.

Tecogen Media & Investor Relations Contact Information:

Abinand Rangesh
P: 781-466-6487
E: Abinand.Rangesh@tecogen.com

SOURCE: Tecogen, Inc.

View the original press release on ACCESS Newswire

FAQ

How much did Tecogen (TGEN) raise in its July 2025 public offering?

Tecogen raised approximately $19.9 million in gross proceeds through the offering of 3,985,000 shares at $5.00 per share.

What is the purpose of Tecogen's 2025 public offering?

The proceeds will be used for product development, increased sales and marketing activities, hiring, capital expenditures, expansion into the data center market, and general working capital.

Who was the underwriter for Tecogen's 2025 public offering?

Roth Capital Partners LLC acted as the sole manager and underwriter for the offering.

How many additional shares did the underwriter purchase in Tecogen's offering?

The underwriter exercised their full option to purchase an additional 485,000 shares of common stock.

What was the price per share for Tecogen's 2025 public offering?

The public offering price was set at $5.00 per share.