Capstone Green Energy plunges on deep-discounted equity raise

Capstone Green Energy

19/08/2022 13:43

(Updates with pricing details)
    ** Shares of Capstone Green Energy  CGRN.O  plunge 42% to
$2.28 premarket as follow-on prices
    ** Stock biggest pct loser across U.S. exchanges as of 8:40
a.m. ET
    ** Energy tech systems provider sells 2.9 mln shares and
warrants to buy up to additional 2.9 mln shares for $8 mln raise
 urn:newsml:reuters.com:*:nBw3txgKKa
    ** Offering price of $2.75 represents 30% discount to
stock's last close
    ** 5-yr warrants are exercisable immediately with $2.75
exercise price
    ** Co plans to use proceeds for working capital and expand
long-term rental fleet
    ** CGRN has ~15.3 mln shares outstanding, per Refinitiv
data, and ~14.8 mln of free float
    ** On Weds, CGRN secured orders for five C1000 "signature
series" microturbines and said project marked largest single
order for Capstone microturbines  urn:newsml:reuters.com:*:nBw6dnqS4a
    ** Through Thurs close, stock surged 121% in Aug, benefiting
from President Joe Biden signing into law sweeping bill to help
fight climate change  urn:newsml:reuters.com:*:nL1N2ZS21W
    ** Shares up ~19% YTD

 (Reporting by Mehnaz Yasmin and Lance Tupper
Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((Mehnaz.Yasmin@thomsonreuters.com
lance.tupper@thomsonreuters.com))