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SAN JOSE, Calif. - Energous Corporation (NASDAQ:WATT), a wireless power solutions company with a current market capitalization of $11.38 million, announced Thursday the closing of its previously announced registered direct offering and concurrent warrant exercise, raising approximately $5 million in gross proceeds. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt, though it has been rapidly burning through its cash reserves.
The wireless power solutions company completed a registered direct offering of 585,347 shares of common stock (or equivalents) and warrants to purchase up to 585,347 additional shares at an offering price of $7.92 per share and accompanying warrant. The warrants have an exercise price of $7.79 per share and will expire in five years. The stock has shown significant volatility, with InvestingPro analysis indicating the shares are currently trading below their Fair Value.
Simultaneously, Energous closed the exercise of certain outstanding warrants originally issued in March 2023 and February 2024, resulting in the issuance of 47,764 shares of common stock. The company issued new unregistered warrants to purchase an equal number of shares at an exercise price of $7.79 per share.
Rodman & Renshaw, LLC and H.C. Wainwright & Co. served as exclusive placement agents for the transactions.
Energous intends to use the net proceeds for working capital and general corporate purposes, according to the press release statement.
The registered direct offering was conducted pursuant to a shelf registration statement on Form S-3 that was declared effective by the Securities and Exchange Commission on February 12, 2025.
Energous specializes in developing over-the-air wireless power networks that enable battery-free devices for asset tracking and management applications. While the company maintains a strong liquidity position with a current ratio of 4.03, analysts expect modest revenue growth of 7.71% for the current fiscal year. For deeper insights into WATT’s financial health and growth prospects, including 12 additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Energous Corporation reported record quarterly revenue, expecting to surpass $900,000 in the second quarter of 2025. This marks the company’s strongest quarter to date and the lowest quarterly net loss in a decade, with an anticipated net loss of about $3 million. This figure reflects an 11% improvement from the previous quarter and a 30% reduction compared to the same period last year. Additionally, Energous announced a $5 million registered direct offering through agreements involving shares of common stock and accompanying warrants. The shares will be sold at $7.92 each, with warrants exercisable at $7.79 per share over a five-year term. In another development, Energous will implement a 1-for-30 reverse stock split effective August 11, 2025, to comply with Nasdaq’s minimum bid price requirements. This reverse split, approved by stockholders, will consolidate every 30 shares of common stock into one share. These recent developments highlight significant financial and strategic maneuvers by Energous Corporation.
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