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What Brought The Capstone (CGRN) Stock Down In Extended Trades?

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In Thursday’s after-hours session, shares of Capstone Green Energy Corporation (CGRN) fell by -26.78% to $5.36. In the last trading session, Capstone stock remained almost stable declining -0.41% to $7.32.

CGRN stock experienced a trading volume of 0.21 million shares, which is above the average daily volume of 0.13 million shares for the last 50 days. On launching a bought deal offering of its common stock, CGRN stock lost ground.

What was CGRN’s bought deal?

Capstone is a global provider of custom microgrid solutions and on-site energy technology systems that help customers achieve their environmental, energy-saving, and resiliency objectives. A key focus of CGRN is on four product lines: Energy Conversion Products, Hydrogen Energy Solutions, Energy as a Service (EaaS), and Energy Storage Products. A rental system from CGRN is a great option for customers with limited capital or short-term needs.

Capstone announced yesterday that CGRN and the underwriter have decided to expand the previously planned public offering based on high demand.

  • CGRN’s underwriter has agreed to purchase 1,904,763 shares of its common stock on a firm commitment basis.
  • In line with the agreement, shares of CGRN common stock will be offered to underwriters at a price of $5.25 per share, minus underwriting discounts and commissions.
  • CGRN anticipates that the offering will close on June 22, 2021, assuming all customary closing conditions are met.
  • C. Wainwright & Co. is CGRN’s sole book-running manager in relation to that offering.
  • CGRN has also granted the underwriter a 30-day option to purchase up to an additional 285,714 shares of common stock, less underwriting discounts, and commissions, at the public offering price.

Utilization of proceeds:

At closing, Capstone (CGRN) is expected to have received approximately $10,000,000 after deducting underwriting discounts and commissions, offering expenses, and the ability to purchase additional shares of stock.

CGRN plans to use the net proceeds from the offering for working capital, general business operations, as well as growth initiatives, including organic growth and potential acquisitions in the future. The CGRN does not currently have any agreements, understandings, or arrangements for such acquisition.

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