CHPT - ChargePoint stock slides 15% on plans of raising new capital
2023-10-11 12:11:13 ET
ChargePoint Holdings Inc (NYSE: CHPT) lost another 10% this morning after announcing plans of raising new capital via a stock sale.
ChargePoint is raising $232 million in total
On Wednesday, the electric vehicles infrastructure company said a group of institutional investors wanted to buy $175 million worth of its newly issued stock. According to Rex Jackson – the Chief Financial Officer of ChargePoint:
These raises and our recently announced $150 million revolving credit facility are consistent with our announced capital strategy to bolster our balance sheet.
The New York listed firm also confirmed today that it tapped on its existing ATM facility to raise another $57 million in the third quarter as well.
Live from #APTAExpo ! ¿¿ Today, we announced a pantograph option for the ChargePoint Express Plus charging system. This new 500 kW DC charging system is specifically designed for electric bus fleets, providing a class-leading charging speed that is future-proof and a major upgrade… pic.twitter.com/rEHOYhrdRT
— ChargePoint (@ChargePointnet) October 10, 2023
Last month, the EV charging network operator reported a 39% YoY increase in its quarterly revenue. ChargePoint stock ha still lost nearly 45% ever since.
What else was noteworthy in today’s release
ChargePoint does not have plans of offering anymore stock under its existing at-the-market facility for now, as per the finance chief.
The press release on Wednesday also confirmed that the California-based company has adjusted the terms of a $300 million worth of convertible senior notes it sold last year.
It will now have to pay higher interest on that financing but has a year more to pay it back as well. Also today, peer Plug Power said in a regulatory filing that its revenue will climb sharply and hit about $6.0 billion by 2027.
Wall Street currently has a consensus “overweight” rating on ChargePoint stock .
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