Elong Power Holding Limited (ELPW) had a rough Friday. The stock dropped more than 50% after the company announced it had priced a public offering at 40 cents per unit, raising fresh capital but also stirring up dilution concerns among existing shareholders.
The Beijing-based lithium battery energy storage company said the offering is expected to generate about $6.6 million in gross proceeds, before underwriting fees and other expenses. The company is offering 16.5 million units on a best-efforts basis at 40 cents each. Each unit consists of one Class A ordinary share (or a pre-funded warrant in lieu of a share) and one common warrant to buy an additional Class A ordinary share.
The common warrants are exercisable immediately at an initial exercise price of 40 cents per share—the same as the offering price. They expire three years after issuance and include standard anti-dilution protections covering stock splits, share combinations, dividend distributions, future equity sales, and certain corporate restructurings. The offering is expected to close on July 13, subject to customary conditions.
Elong Power develops lithium-ion battery energy storage systems and related solutions, serving residential, commercial, and industrial markets outside China, as well as grid-side projects in China. The company operates an asset-light model, focusing on R&D and AI-enabled energy storage technologies. CEO Xiaodan Liu leads the company.
At the time of publication, shares were trading at $0.28, down 50.51% on the day, according to market data.
