Shares in EnSync Plunge After Company Announces Stock Offering
EnSync Energy Systems, a manufacturer of renewable energy storage and power control products based in the Milwaukee area, saw its stock price fall more than 37 percent on Thursday after the company announced a public stock offering.
Shares in EnSync (NYSE: ESNC) ended the trading day at just under 32 cents apiece, down more than 18 cents from Wednesday’s closing price of 50 cents a share.
Nearly 3.5 million shares of EnSync stock changed hands Thursday. That’s more than 46 times the stock’s average daily volume of 74,470 trades.
EnSync said it plans to sell up to 8.2 million shares of common stock for 35 cents apiece, meaning the total haul from the offering could reach nearly $2.9 million. The company said it plans to use some of the money raised through the offering to fund the development of decentralized energy systems that produce electricity near the end users of power through the use of small-scale technologies.
Newport Beach, CA-based Roth Capital Partners is managing the stock offering, which is expected to close by Tuesday.
EnSync, which was founded in 1986 and was previously named ZBB Energy, has struggled financially in recent years. Four years ago, it faced the possibility of being delisted from the New York Stock Exchange.
The company’s current market cap is about $15.1 million.