What's Going On With Enovix Stock?

Enovix Corp ENVX shares fell in Monday's after-hours session before bouncing back in early trading Tuesday. The silicon battery company announced the pricing of a $150 million offering. 

What To Know: Enovix said it intends to offer $150 million of 3% convertible senior notes due 2028 in a private placement to institutional buyers. 

An entity affiliated with Enovix chairman Thurman Rodgers agreed to purchase $10 million worth of the notes.  An entity affiliated with John Doerr, chairman of Kleiner Perkins, has also agreed to purchase $10 million worth.

"We believe the proceeds from these notes, together with the previously announced $70 million non-dilutive financing we are seeking to fund our planned next-generation manufacturing line in Malaysia, will enable us to build four production lines, all at approximately 7% dilution to our stockholders," said Raj Talluri, president and CEO of Enovix.

"With these lines, we expect to be able to manufacture between 38 million to 75 million batteries a year."

Enovix expects net proceeds of $133.9 million or $155.7 million if the purchasers exercise options to purchase additional notes. 

Enovix is set to report first-quarter results on April 26. The company is expected to turn in a quarterly loss of 21 cents per share. Enovix shares are pretty heavily shorted with nearly 20% of the float currently sold short, according to Benzinga Pro.

See Also: US Stocks Ready To Rally Amid Earnings Optimism: Analyst Sees Upward Momentum On 'Outlier' S&P 500 Returns

ENVX Price Action: Enovix has a 52-week high of $26.28 and a 52-week low of $6.49.

The stock was down more than 7% in extended trading Monday before staging a reversal. Enovix shares were up 0.22% at $13.60 at the time of publication, according to Benzinga Pro.

Photo: Dean Simone from Pixabay.