Enovix (NASDAQ:ENVX) stock is on the move Tuesday after the battery company announced the details of a private placement.
That private placement covers the sale of $150 million worth of 3% Convertible Senior Notes due 2028. The offer is being made to qualified institutional buyers. Among these are Enovix chairman Thurman Rodgers and Kleiner Perkins chairman John Doerr each agreeing to acquire $10 million of the notes.
To go along with this, the company is allowing initial buyers to acquire additional notes. This gives them a 13-day period to purchase another $22.5 million of the notes after the expected close of April 20.
Enovix is expecting gross proceeds from the offering to range from $133.9 million to $155.7 million, depending on additional purchases being made. It will use these funds to cover capped call transactions, as well as for setting up a second battery cell manufacturing facility and for other purposes.
How This Affects ENVX Stock on Tuesday
First off, it’s worth noting that shares of ENVX stock are seeing heavy trading today. As of this writing, more than 6 million shares have changed hands. That’s already above the company’s daily average trading volume of about 4.7 million shares.
ENVX stock was initially down in pre-market trading after announcing the private placement. However, it has since recovered from that dip and is up 2.3% as of Tuesday morning
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
