GWH - ESS Tech: The Honeywell Honeymoon Was Brief
2024-02-12 00:38:46 ET
Summary
- Honeywell joined an "A" list of significant investors in ESS Tech on September 25, 2023, buying $27.5 million of stock and prefunding sales commitments.
- After a brief 43% stock spike, the honeymoon was over and the stock is trading at 95 cents, a decrease of 32% from the close before the Honeywell announcement.
- Almost immediately after making this investment Honeywell restructured. One wonders whether the deal would/could have been done post-restructuring.
- Despite a very brief honeymoon, Honeywell brings a lot to the table.
- GWH management has forecast a record-breaking 4Q - the first full quarter since Honeywell came aboard.
Background
ESS Tech Inc. ( GWH ) went public via a SPAC merger in late 2021. The company's shareholders include Bill Gates' Breakthrough Energy Ventures and Softbank. Now, as mentioned above, these stalwarts are joined by Honeywell ( HON ) which has invested $27.5 million to purchase 16.5 million common shares on September 25, 2023....
ESS Tech: The Honeywell Honeymoon Was Brief