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SAN JOSE, Calif. - Energous Corporation (NASDAQ:WATT), a developer of wireless power networks with a market capitalization of $15.2 million, announced Wednesday it has entered into agreements to raise approximately $5 million through a registered direct offering and warrant exercises. The capital raise comes as InvestingPro data shows the company has been quickly burning through cash, despite maintaining more cash than debt on its balance sheet.
The company will sell 585,347 shares of common stock (or equivalents) with accompanying warrants at $7.92 per share in an at-the-market offering under Nasdaq rules. The warrants will have an exercise price of $7.79 per share and a five-year term.
Additionally, Energous reached agreements for the immediate exercise of certain outstanding warrants originally issued in March 2023 and February 2024, covering 47,764 shares total. The March 2023 warrants will be exercised at their current $6.7595 price, while the February 2024 warrants will be exercised at a reduced price of $7.79 per share.
As consideration for these exercises, Energous will issue new unregistered warrants for 47,764 shares at an exercise price of $7.79 per share.
Rodman & Renshaw, LLC and H.C. Wainwright & Co. are serving as exclusive placement agents for the transactions, which are expected to close around September 11, 2025, subject to customary closing conditions.
Energous plans to use the proceeds for working capital and general corporate purposes, according to the press release statement. While the company maintains a healthy current ratio of 4.03, InvestingPro analysis reveals additional insights about the company’s financial health and future prospects. For deeper analysis and 12 more exclusive ProTips about WATT, including detailed financial health scores and Fair Value estimates, investors can access the comprehensive Pro Research Report available on InvestingPro.
The registered direct offering is being conducted under a shelf registration statement filed with the Securities and Exchange Commission in December 2024 and declared effective in February 2025. The unregistered warrants are being issued in a private placement transaction.
In other recent news, Energous Corporation announced a record-breaking quarterly revenue of over $900,000 for the second quarter of 2025. This achievement marks the company’s strongest quarter to date. Alongside this, Energous reported its lowest quarterly net loss in a decade, projecting a net loss of approximately $3 million for the quarter ended June 30. This represents an 11% improvement from the previous quarter and a 30% reduction compared to the same period last year. In another development, Energous plans to implement a 1-for-30 reverse stock split, effective August 11, 2025. This move, approved by stockholders at the Annual Meeting, aims to help the company regain compliance with Nasdaq’s minimum bid price requirements. The reverse split will automatically convert every 30 shares of issued and outstanding common stock into one share. These recent developments highlight significant financial and strategic changes for Energous Corporation.
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