STOCK TITAN

Factorial Energy must pay about $4.5M in final award

The final award followed a contractual dispute with a vendor and requires a net payment of approximately $4.5 million.

(Moderate)

Sentiment and the balance of points

Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.

Form Type
424B3

Rhea-AI Filing Summary

Factorial Energy Inc. (FAC) prospectus supplement covers 86,441,489 shares of Series A Common Stock for resale by selling securityholders and 13,800,000 shares issuable upon exercise of public warrants. It also reports that an arbitrator issued a final award on October 7, 2026, in favor of a vendor in a contractual dispute, requiring Factorial to pay a net amount of approximately $4.5 million.

0 points · 0 major

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

0 major · 1 point

How the balance works

Positive

  • None.

Negative

  • Moderate pointFinal arbitration award requires a net payment of approximately $4.5 million to a vendor.
Series A Common Stock for resale 86,441,489 shares By the selling securityholders
Shares issuable upon public warrant exercise 13,800,000 shares Series A Common Stock
Net arbitration award Approximately $4.5 million Final award issued October 7, 2026
Common stock last quoted sale price $5.08 per share October 8, 2026
Public warrant last quoted sale price $0.72 per warrant October 8, 2026
Public warrant exercise price $11.50 per warrant Each whole warrant is exercisable for one share of Series A Common Stock
public warrants financial
"Shares ... Issuable Upon the Exercise of Public Warrants"
Public warrants are tradable securities that give the holder the right to buy a company’s stock at a fixed price before a set expiration date. Like a coupon that lets you purchase shares later at a preset price, they matter to investors because using them can bring new cash into the company but also increase the total number of shares outstanding, which can dilute existing ownership and influence the stock’s price and potential gains.
selling securityholders financial
"Shares of Series A Common Stock by the Selling Securityholders"
Selling securityholders are existing owners of a company's stocks or other tradable claims who are offering some or all of their holdings for sale in a public offering or secondary transaction. Investors watch these sellers because large or insider sales can increase the number of shares available, put downward pressure on price, and signal insiders’ views about future prospects—much like many people selling tickets at once can change the market for an event.
emerging growth company regulatory
"We are an “emerging growth company” under applicable federal securities laws"
An emerging growth company is a recently public or smaller public firm that qualifies for temporary, lighter regulatory and disclosure rules to reduce the cost and effort of being public. For investors, it means the company may provide less historical financial detail and face fewer reporting requirements than larger firms, so it can grow more quickly but also carries higher uncertainty—like buying a promising early-stage product with fewer user reviews.
final award regulatory
"the arbitrator issued a final award in favor of the vendor"
Offering Type mixed
Securities Offered Series A Common Stock
Offering Amount 86,441,489 shares for resale by selling securityholders; 13,800,000 shares issuable upon exercise of public warrants

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How many FAC shares are covered by the prospectus?

It lists 86,441,489 shares of Series A Common Stock for resale by selling securityholders and 13,800,000 shares issuable upon exercise of public warrants.

What did the FAC arbitration award require?

The arbitrator issued a final award on October 7, 2026, in favor of a vendor in a contractual dispute, requiring Factorial to pay a net amount of approximately $4.5 million.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR Accepted by SEC EDGAR Learn about SEC filing dates

 

Filed Pursuant to Rule 424(b)(3)

Registration No. 333-297158

 

Prospectus Supplement No. 2

(To Prospectus dated July 7, 2026)

 

FACTORIAL ENERGY INC.

86,441,489 Shares of Series A Common Stock by the Selling Securityholders

13,800,000 Shares of Series A Common Stock Issuable Upon the Exercise of Public Warrants

 

This prospectus supplement no. 2 (this “Prospectus Supplement”) amends and supplements the prospectus dated July 7, 2026 (as supplemented by prospectus supplement no. 1, dated September 21, 2026, and as may be further supplemented or amended from time to time, the “Prospectus”) which forms part of our Registration Statement on Form S-1 (Registration Statement No. 333-297158). This Prospectus Supplement is being filed to update and supplement the information included or incorporated by reference in the Prospectus with the information contained in our Current Report on Form 8-K, filed with the Securities and Exchange Commission (the “SEC”) on October 9, 2026 (the “Form 8-K”). Accordingly, we have attached the Form 8-K to this Prospectus Supplement.

 

This Prospectus Supplement updates and supplements the information in the Prospectus and is not complete without, and may not be delivered or utilized except in combination with, the Prospectus, including any amendments or supplements thereto. This Prospectus Supplement should be read in conjunction with the Prospectus, and if there is any inconsistency between the information in the Prospectus and this Prospectus Supplement, you should rely on this Prospectus Supplement.

 

Our common stock and public warrants are listed on the Nasdaq Global Market (“Nasdaq”) under the symbols “FAC” and “FACWW,” respectively. On October 8, 2026, the last quoted sale price of our common stock as reported on Nasdaq was $5.08 per share and the last quoted sale price of our public warrants as reported on Nasdaq was $0.72 per warrant.

 

We are an “emerging growth company” under applicable federal securities laws and will be subject to reduced public company reporting requirements.

 

Investing in our securities involves a high degree of risk. Before buying any securities, you should carefully read the discussion of the risks of investing in our securities in “Risk Factors” beginning on page 9 of the Prospectus.

 

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of the securities to be issued under the Prospectus or determined if the Prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

 

The date of this Prospectus Supplement is October 9, 2026.

 

 

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): October 7, 2026

 

 

FACTORIAL ENERGY INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware   001-42629   42-2967285
(State or other jurisdiction
of incorporation)
  (Commission File Number)   (IRS Employer
Identification No.)

 

805 Middlesex Turnpike

Billerica, MA 01821

(Address of principal executive offices including zip code)

 

Registrant’s telephone number, including area code: (617) 315-9733

 

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading
Symbol
  Name of each
exchange
on which registered
Series A Common Stock, par value $0.00001 per share   FAC   The Nasdaq Global Market
Warrants, each whole warrant exercisable for one share of Series A Common Stock at an exercise price of $11.50   FACWW   The Nasdaq Global Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company x

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

 

 

 

Item 8.01 Other Events.

 

As previously disclosed in the Quarterly Report on Form 10-Q of Factorial Energy Inc. (the “Company”) for the quarter ended June 30, 2026, filed with the Securities and Exchange Commission on August 11, 2026, the Company was party to an arbitration, initiated on March 14, 2025, before the International Centre for Dispute Resolution. The arbitration was a contractual dispute with a vendor. On October 7, 2026, the arbitrator issued a final award in favor of the vendor, requiring the Company to pay a net amount of approximately $4.5 million.

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    FACTORIAL ENERGY INC.
     
Date: October 9, 2026 By: /s/ Siyu Huang
  Name: Siyu Huang
  Title: Chief Executive Officer

 

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