Brenmiller Energy Ltd, a prominent player in the thermal energy storage (TES) sector, finds itself at the center of market turbulence following a recent securities purchase agreement. The company, known for its innovative approach to thermal energy solutions, entered into an agreement with a U.S.-based institutional investor that involves the issuance and sale of 888,890 units. Each unit comprises one ordinary share, no par value per share, and one warrant to purchase another ordinary share.
The deal, priced at $4.50 per unit, aims to generate approximately $4.0 million in gross proceeds. However, the announcement sent shockwaves through the market, resulting in a significant decline in Brenmiller Energy Ltd’s stock value. The stock opened Tuesday’s trading at $5.28, a notable drop from the previous day’s closing at $5.79. This represents a change of -14.78%.
At the time of this publication, Brenmiller Energy Ltd stock (BNRG) has witnessed a decline.
Brenmiller Energy Ltd
Current Price: $4.94
Change : -0.86
Change (%): (-14.78%)
Volume: 17.5K
Source: Tomorrow Events Market Data
Investors are undoubtedly keeping a close eye on the developments surrounding Brenmiller Energy Ltd, as the company navigates the aftermath of the securities purchase agreement. The warrants issued as part of the deal will be exercisable immediately at a price of $5.00 per share and are set to expire five years from the date of issuance.
The offering, expected to close on or about January 25, 2024, is subject to customary closing conditions. Brenmiller Energy Ltd intends to utilize the net proceeds for general corporate purposes, encompassing working capital and capital expenditures. A.G.P./Alliance Global Partners is spearheading the offering as the sole placement agent.
It’s worth noting that the securities involved in this transaction are offered pursuant to a registration statement on Form F-1 (File No. 333-275115), which gained effectiveness on January 22, 2024, as per the Securities and Exchange Commission (“SEC”).
As the story unfolds, market analysts and investors will be closely monitoring Brenmiller Energy Ltd’s trajectory, assessing how the company weathers the storm and whether the strategic move pays off in the long run. The coming days will likely see heightened scrutiny and speculation surrounding this unexpected downturn in the company’s stock value.
