The post EV Charging Operator ChargePoint Announces $232 Million Raise, CHPT Stock Tanks 15% appeared on BitcoinEthereumNews.com.

ChargePoint stock comes under severe selling pressure as the company liquidates equity for another major fundraise. On Wednesday, October 11, EV charging network operator ChargePoint Holdings (NYSE: CHPT) announced its plans to raise a staggering $232 million through the stock sale. This was enough to send the ChargePoint stock spiraling downwards by 15%. ChargePoint announced that a consortium of institutional investors will acquire $175 million in fresh shares. The firm further revealed it secured an additional $57 million in the current fiscal quarter through its existing “at-the-market” stock offering program. Thus, the total capital raised is $232 million. In a separate development, ChargePoint successfully garnered $57 million in net proceeds during the third quarter of 2024 through the ATM facility. Speaking on the development, Rex Jackson, CFO of ChargePoint said: “We are pleased to secure $232M in funding this quarter, which supports our stated goal of adjusted EBITDA profitability in the fourth fiscal quarter of next year. These raises and our recently announced $150M revolving credit facility are consistent with our announced capital strategy to bolster our balance sheet. We have no further plans to access the ATM.” He further added that the new funds along with the recently secured credit line will also support the company’s role into early 2025. ChargePoint on Convertible Notes ChargePoint has also announced a modification to the terms of a prior $300 million convertible notes deal. This change extends the company’s repayment timeline by a year but comes with increased interest payments. In a separate agreement, ChargePoint, along with the lead investor in the Notes, has entered into a binding term sheet to revise the Notes. These revisions include an extension of the maturity from April 1, 2027, to April 1, 2028. The changes also involve an increase in the cash coupon from 3.5% to…

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Filed under: News - @ October 12, 2023 2:16 pm