ESS Tech Enters $15M Direct Offering Agreement

ESS Tech announced that it has entered into definitive agreements in a registered direct offering with institutional investors for the purchase and sale of approximately $15M of shares of common stock and pre-funded warrants at a price of $1.75 per share of common stock, which price is a premium to the closing price on January 28. The offering consists of the sale of 8,571,428 shares of common stock. The public offering price per share is $1.75. The pre-funded warrants will be immediately exercisable and may be exercised at any time until exercised in full. For each pre-funded warrant sold in the offering, the number of shares of common stock in the offering will be decreased on a one-for-one basis. Aggregate gross proceeds to the company are expected to be approximately $15M. The transaction is expected to close on or about January 30, subject to the satisfaction of customary closing conditions. The company expects to use the net proceeds from the offering, together with its existing cash, for general corporate purposes and working capital. Aegis Capital Corp. is acting as exclusive placement agent for the offering.