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FREMONT, Calif. - Enovix Corporation (NASDAQ:ENVX), a $2.5 billion market cap battery technology company that has seen its stock surge over 10% in the past week, announced Monday a special dividend in the form of warrants to shareholders of record as of July 17, 2025, following the launch of its new AI-1 silicon-anode smartphone battery platform.According to InvestingPro data, while Enovix doesn’t pay regular dividends, the company maintains a strong balance sheet with more cash than debt and a healthy current ratio of 4.7x.
Stockholders will receive one warrant for every seven shares held, with distribution expected on July 21. Each warrant will allow holders to purchase one share of common stock at $8.75 per share, representing a 12% premium to the 60-day volume-weighted average price as of July 3.
The warrants, which will trade on Nasdaq under the ticker ENVXW, could raise up to $253.8 million in gross proceeds if fully exercised. They will expire on October 1, 2026, unless an early expiration condition is triggered when the stock trades at or above $10.50 for 20 out of 30 consecutive trading days.
"This dividend is designed to give our shareholders meaningful flexibility without dilution and with no obligation to act," said Ryan Benton, Enovix CFO, in the press release. "We’re well funded today, but if exercised, the proceeds could support scale-up of Fab2, accelerate customer ramps, and advance our strategic priorities."
The company’s new AI-1 platform targets next-generation smartphones requiring higher energy storage and power to perform artificial intelligence functions locally.
Holders of Enovix’s 3.00% convertible senior notes due 2028 will also receive warrants on a pass-through basis according to terms in the governing indenture.
B. Dyson Capital Advisors is serving as exclusive advisor on the warrant distribution, with TD Cowen as financial advisor and Canaccord Genuity, Oppenheimer & Co. Inc., and William Blair & Company as additional capital markets advisors.
Enovix specializes in lithium-ion battery technology with a proprietary 3D cell architecture designed for higher energy density and improved safety.
In other recent news, Enovix Corporation reported preliminary second-quarter 2025 revenue of $7.5 million, surpassing its guidance range of $4.5 million to $6.5 million. This marks a 98% increase from the same period last year, driven by strong customer demand. The company also achieved positive gross profit for the third consecutive quarter, with a GAAP gross profit of $0.8 million and a non-GAAP gross profit of $1.2 million. Enovix’s GAAP operating loss narrowed to $43.8 million, while the non-GAAP operating loss was $27.8 million, both better than the company’s guidance. Additionally, Enovix announced its first shipment of high-density AI-1 batteries to a leading smartphone manufacturer for qualification testing, which are part of a new platform designed for AI-enabled smartphones. In another development, Enovix’s Board of Directors authorized a $60 million share repurchase program, which Northland views as a bullish sign for the company’s future production capabilities. The buyback plan is intended to provide flexibility in managing the company’s capital structure and responding to market conditions. Enovix ended the quarter with approximately $203 million in cash, cash equivalents, and short-term investments after completing the SolarEdge asset acquisition in South Korea.
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