Energy Focus Stock Plummets After Raising $4.5M Via Equity Offering

Energy Focus Inc EFOI has entered into definitive securities purchase agreements with institutional investors to sell 1.28 million shares of common stock and warrants to purchase up to 1.28 million shares, in combinations of one share (or one pre-funded warrant) and one warrant for a combined purchase price of $3.52.
Each warrant is exercisable into one share of common stock at a price per share of $3.52 and will expire five years from the initial exercise date.
The company anticipates the private placement to close on or about December 16, 2021.
Energy Focus expects gross proceeds from the offering to be approximately $4.5 million and intends to use the net proceeds for general corporate purposes.
Price Action: EFOI shares are trading lower by 23.6% at $3.59 on the last check Tuesday.