Energous Announces Closing of Registered Direct Offering and Concurrent Warrant Exercise for $5 Million in Gross Proceeds Priced At-the-Market Under Nasdaq Rules

Rhea-AI Summary

Energous Corporation (NASDAQ: WATT), a pioneer in over-the-air wireless power networks, has completed a registered direct offering and concurrent warrant exercise, raising $5.0 million in gross proceeds. The offering included 585,347 shares of common stock priced at $7.92 per share with accompanying warrants exercisable at $7.79 per share.

Additionally, the company closed the exercise of previously issued warrants for 47,764 shares from March 2023 and February 2024. New unregistered warrants were issued as consideration for the exercise. Rodman & Renshaw, LLC and H.C. Wainwright & Co. served as exclusive placement agents, with proceeds intended for working capital and general corporate purposes.

Positive

• Raised $5.0 million in gross proceeds to strengthen working capital
• Successfully completed warrant exercise from previous offerings
• Maintained at-the-market pricing under Nasdaq rules

Negative

• Potential dilution for existing shareholders through new share issuance
• Warrants could lead to additional future dilution if exercised

Insights

Capital Markets Analyst

Energous raised $5M through share offering and warrant exercises, diluting existing shareholders while improving short-term liquidity position.

Energous Corporation (WATT) has completed a $5 million capital raise through a combination of a registered direct offering and warrant exercises. The company issued 585,347 shares (or equivalents) with accompanying warrants at $7.92 per share. Additionally, Energous facilitated the exercise of existing warrants from previous issuances, notably reducing the exercise price of its February 2024 warrants from $55.20 to $7.92 per share - a significant 85.7% discount to incentivize conversion.

This financing transaction reveals important dynamics about Energous' current financial position. The at-the-market pricing indicates the company couldn't command a premium valuation, while the warrant exercise price reduction signals urgency to secure capital. The issuance of new five-year warrants with a $7.79 exercise price creates potential future dilution beyond the immediate share issuance.

The stated use of proceeds for "working capital and general corporate purposes" is notably vague, suggesting this raise primarily addresses liquidity needs rather than funding specific growth initiatives. For a company pioneering wireless power technology, this financing approach - with its dilutive implications and the significant discounting required to attract investors - reflects the challenging position Energous faces in commercializing its over-the-air wireless power networks.

SAN JOSE, Calif., Sept. 11, 2025 (GLOBE NEWSWIRE) -- Energous Corporation d/b/a Energous Wireless Power Solutions (Nasdaq: WATT) (“Energous” or the “Company”), a pioneer in scalable, over-the-air (OTA) wireless power networks, today announced the closing of its previously announced registered direct offering priced at-the-market under Nasdaq rules of an aggregate of 585,347 shares of its common stock (or common stock equivalents in lieu thereof) and warrants to purchase up to 585,347 shares of common stock, at an offering price of $7.92 per share of common stock (or per common stock equivalent in lieu thereof) and accompanying warrant. The warrants have an exercise price of $7.79 per share, are exercisable immediately upon issuance and expire five years following initial date of issuance.

In addition, the Company concurrently announced the closing of the previously announced immediate exercise of certain outstanding warrants of the Company to purchase an aggregate of 47,764 shares of the Company's common stock originally issued by the Company in March 2023 and February 2024 and having exercise prices of $6.7595 and $55.20 per share, respectively. The 13,750 warrants issued in March 2023 were exercised at an exercise price of $6.8845 and the 34,014 warrants issued in February 2024 were exercised at a reduced exercise price of $7.92 per share. As consideration for the exercise of such existing warrants for cash, the Company issued new unregistered warrants to purchase up to an aggregate of 47,764 shares of common stock at an exercise price of $7.79 per share in a private placement priced at-the-market under Nasdaq rules. The shares underlying the outstanding warrants are registered pursuant to an effective registration statement on Form S-3 (File No. 333-261087). The new warrants are exercisable immediately upon issuance and expire five years following the initial issuance date.

Rodman & Renshaw, LLC and H.C. Wainwright & Co. acted as the exclusive placement agents for the offering and the warrant exercise.

The aggregate gross proceeds to the Company from the offering and the warrant exercise were approximately $5.0 million, before deducting the placement agents’ fees and other offering expenses payable by the Company. The Company intends to use the net proceeds from the offering for working capital and general corporate purposes.

The shares of common stock (or common stock equivalents) described above (but not the unregistered warrants issued in the warrant exercise or the shares of common stock underlying such unregistered warrants) were offered and sold by the Company in a registered direct offering pursuant to a “shelf” registration statement on Form S-3 (File No. 333-283819) that was filed with the Securities and Exchange Commission (the “SEC”), on December 13, 2024, as amended on January 31, 2025, and declared effective by the SEC on February 12, 2025. The securities offered in the registered direct offering were offered only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A final prospectus supplement and the accompanying base prospectus relating to the registered direct offering were filed with the SEC and are available on the SEC’s website at www.sec.gov. Electronic copies of the final prospectus supplement and the accompanying base prospectus may also be obtained from Rodman & Renshaw LLC at 600 Lexington Avenue, 32nd Floor, New York, NY 10022, by telephone at (212) 540-4414, or by email at info@rodm.com and H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by phone at (212) 856-5711 or e-mail at placements@hcwco.com.

The unregistered warrants described above were issued in a transaction not involving a public offering and have not been registered under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”) and/or Rule 506(b) of Regulation D promulgated thereunder and, along with the shares of common stock underlying such unregistered warrants, have not been registered under the Securities Act or applicable state securities laws. Accordingly, the unregistered warrants and underlying shares of common stock may not be offered or sold in the United States except pursuant to an effective registration statement with the SEC or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, 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 the registration or qualification under the securities laws of any such state or jurisdiction.

About Energous Wireless Power Solutions

Energous Corporation d/b/a Energous Wireless Power Solutions (Nasdaq: WATT) is pioneering scalable, over-the-air (OTA) wireless power networks that enable unprecedented levels of visibility, control, and intelligent business automation. The Company’s wireless power transmitter and receiver technologies deliver continuous access to wireless power, helping drive a new generation of battery-free devices for asset and inventory tracking and management—from retail sensors, electronic shelf labels, and asset trackers, to air quality monitors, motion detectors, and more. For more information, visit http://www.energous.com/ or follow on LinkedIn.

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 relating to the intended use of proceeds from the registered direct offering and concurrent warrant exercise. Factors that could cause actual results to differ from current expectations include: market and other conditions; 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.

Contacts

Investor Relations
IR@energous.com

FAQ

What is the size and price of Energous Corporation's (WATT) latest offering in September 2025?

Energous offered 585,347 shares at $7.92 per share with accompanying warrants, plus the exercise of 47,764 existing warrants, raising a total of $5.0 million in gross proceeds.

What is the exercise price and duration of the new WATT warrants issued in September 2025?

The new warrants have an exercise price of $7.79 per share and are exercisable immediately with an expiration date of five years from issuance.

How will Energous (WATT) use the proceeds from the September 2025 offering?

Energous plans to use the net proceeds for working capital and general corporate purposes.

Who were the placement agents for Energous Corporation's (WATT) September 2025 offering?

Rodman & Renshaw, LLC and H.C. Wainwright & Co. acted as the exclusive placement agents for the offering and warrant exercise.

What type of offering did Energous (WATT) complete in September 2025?

Energous completed a registered direct offering priced at-the-market under Nasdaq rules, combined with a concurrent warrant exercise from previous offerings.