Electrovaya priced a public offering of 4.7 million common shares at $5.20 each, generating $24.4 million in gross proceeds. Underwriters hold a 30‑day option to purchase an additional 705,000 shares at the same price, which would raise the total to roughly $28.1 million if exercised. The offering is expected to close on or about November 6, 2025.
The offering was oversubscribed, indicating strong investor demand. The pricing of $5.20 per share was a discount to the company’s trading price of $5.80, a factor that contributed to a negative market reaction as investors weighed dilution and the lower price relative to market levels.
Proceeds will be allocated to energy‑as‑a‑service ventures, next‑generation battery and separator research, and general corporate purposes. These uses align with Electrovaya’s strategy to expand its gigafactory in Jamestown, New York, and to deepen its presence in high‑margin, safety‑critical applications.
Electrovaya’s financial backdrop underscores the significance of the capital raise. FY 2024 revenue reached $44.6 million, up from $44.1 million in FY 2023, while gross margin improved to 30.7 % from 29.77 % in the prior year. Preliminary unaudited Q4 FY 2025 revenue exceeded $20 million, a 72 % year‑over‑year increase, and full‑year FY 2025 revenue is projected at about $64 million, a 43 % rise. The company also posted positive adjusted EBITDA and cash flow from operations in FY 2024, reflecting operational efficiency and strong gross margins above 30 %.
Management emphasized the company’s high gross‑margin performance, its service of 16 Fortune 100 customers, and a perfect safety record for its proprietary ceramic separator technology. These points highlight Electrovaya’s focus on performance‑driven, safety‑critical battery solutions rather than commodity pricing competition.
The announcement was met with a negative market reaction, driven by concerns over dilution and the discount pricing relative to the trading price. Investors weighed the immediate impact of the equity issuance against the company’s long‑term growth strategy.
The offering provides capital to accelerate growth in energy‑as‑a‑service and next‑generation battery research, but the immediate market reaction underscores the sensitivity of investors to dilution and pricing decisions in equity offerings.
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