Energous Announces $2.0 Million Registered Direct Offering Priced At-The-Market under Nasdaq Rules
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The definitive securities purchase agreement that Energous Corporation has entered into represents a strategic move to raise capital. The offering price of $1.96 per share is critical, as it provides insight into the current valuation the market is willing to offer. The warrants, with an exercise price of $1.84, are immediately exercisable, suggesting potential confidence from the institutional investor regarding the company's future performance. Investors should note that such transactions can dilute existing shareholders but also provide the company with necessary funds to invest in growth or cover operational costs.
In the short-term, the market reaction to this news can often be volatile, as traders and investors process the implications of the increased share count and the potential for future dilution if the warrants are exercised. In the long-term, the success of this capital raising effort will be measured by how effectively the company uses the funds to generate returns. If used to accelerate development of their RF-based wireless power network solutions, it could position Energous as a stronger player in the wireless power industry, potentially leading to increased market share and revenue growth.
The wireless power industry is becoming increasingly competitive, with numerous companies vying for market dominance. Energous Corporation's move to secure additional funding through a registered direct offering indicates an attempt to solidify its standing and possibly fund further research and development. The industry is on the cusp of significant growth, driven by consumer demand for wireless charging solutions and the integration of wireless power across a multitude of devices.
Understanding the competitive landscape is essential. Energous' technology, which focuses on RF-based solutions, competes with inductive and resonant wireless charging technologies. The company's ability to innovate and capture market interest, particularly in sectors that have not yet adopted wireless power widely, could be a game-changer. The funds raised could enable Energous to invest in such innovations, potentially leading to partnerships, increased intellectual property and market expansion.
The transaction is structured as a registered direct offering, which is significant from a legal perspective. This method of capital raising is faster and typically less costly than a traditional public offering, as it involves selling securities directly to a select group of institutional investors. The transaction adheres to Nasdaq rules, which means it has been structured to comply with specific regulatory requirements, including pricing terms that are at-the-market.
It's important for stakeholders to understand that the legal structure of such deals can impact the timing and certainty of the capital raised. Additionally, the terms of the warrants, including their immediate exercisability and five-year term, are legally binding agreements that provide the investor with the right, but not the obligation, to purchase additional shares at a predetermined price, which can affect the company's stock liquidity and capital structure in the future.
Roth Capital Partners is acting as the exclusive placement agent for the offering.
The gross proceeds to the Company from this offering are expected to be approximately
The securities in the offering described above are being offered by the Company pursuant to a “shelf” registration statement on Form S-3 (File No. 333-261087) previously filed with the Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on December 16, 2021. The offering is being made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement, relating to the offering that will be filed with the SEC. Electronic copies of the final prospectus supplement and accompanying prospectus may be obtained, when available, on the SEC’s website at http://www.sec.gov or by contacting Roth Capital Partners, LLC at 888 San Clemente Drive,
This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities 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 Energous Corporation
Energous Corporation (NASDAQ: WATT) has been pioneering wireless charging over distance technology since 2012. Today, as the global leader in wireless charging over distance, its networks are safely and seamlessly powering its customers’ RF-based systems in a variety of industries, including retail, industrial, healthcare and more. Its total network solution is designed to support a variety of applications, including inventory and asset tracking, smart manufacturing, electronic shelf labels, IoT sensors, digital supply chain management, inventory management, loss prevention, patient/people tracking and sustainability initiatives. The number of industries and applications it serves is rapidly growing as it works to support the next generation of the IoT ecosystem.
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release are forward-looking statements. Forward-looking statements may describe our future plans and expectations and are based on the current beliefs, expectations and assumptions of Energous. These statements generally use terms such as “believe,” “expect,” “may,” “will,” “should,” “could,” “seek,” “intend,” “plan,” “estimate,” “anticipate” or similar terms. Examples of forward-looking statements in this release include but are not limited to statements related to the offering of the securities described herein, the closing of the offering and the use of proceeds therefrom, statements about the future of the global wireless charging industry and statements about our technology and its expected functionality. Factors that could cause actual results to differ from current expectations include: uncertain timing of necessary regulatory approvals; timing of customer product development and market success of customer products; our dependence on distribution partners; and intense industry competition. We urge you to consider those factors, and the other risks and uncertainties described in our most recent annual report on Form 10-K as filed with the Securities and Exchange Commission (SEC), any subsequently filed quarterly reports on Form 10-Q as well as in other documents that may have been subsequently filed by Energous, from time to time, with the SEC, in evaluating our forward-looking statements. In addition, any forward-looking statements represent Energous’ views only as of the date of this release and should not be relied upon as representing its views as of any subsequent date. Energous does not assume any obligation to update any forward-looking statements unless required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240215525220/en/
Energous Investor Relations
Padilla IR
IR@energous.com
Energous Corporate Communications
SHIFT Communications
energous@shiftcomm.com
Source: Energous Corporation
FAQ
What is the offering price of Energous Corporation's common stock in the securities purchase agreement?
How many shares of common stock are included in the securities purchase agreement with the institutional investor?
What is the exercise price of the warrants included in the agreement?
When is the closing of the offering expected to occur?
