ChargePoint Holdings Inc (NYSE:CHPT), a leading electric vehicle infrastructure company, announced on Wednesday that it has gotten a funding commitment from its investors. Indeed, the company said its investors have promised to purchase $175M of its common stock at the company’s at-the-market (ATM) offering facility.
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ChargePoint said its main investor, who oversaw the company’s $300M Convertible Notes issued in April 2022, led this round. For its own part, the company raised $57M in additional funds under the ATM facility during the third fiscal quarter of 2024.
“We are pleased to secure $232M in funding this quarter, which supports our stated goal of adjusted EBITDA profitability in the fourth fiscal quarter of next year,” said Rex Jackson, CFO of ChargePoint.
Per the announcement, the company and its lead investor also went over the details of the 2022 Notes and made some modifications to the terms. As a result, the notes’ maturity date has been extended from April 1, 2027, to April 1, 2028. In addition, the cash coupon has been increased from 3.5% to 7% per year, and the payment-in-kind coupon has also been increased from 5% to 8.5% per year. Additionally, the conversion price has also been adjusted from $24.03 to $12.00 per share.
What is the Future Price of ChargePoint Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on CHPT stock based on 12 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average CHPT price target of $10.91 per share implies 168.72% upside potential.
