Eos Energy to Bag $100M Investment; Shares Rise 4%

Eos Energy Enterprises, Inc. (EOSE), a leading provider of zinc-powered energy storage systems, has announced that Koch Strategic Platforms (KSP), an arm of Koch Investments Group, will invest $100 million to support its strategic growth initiatives. The investment will be made in convertible senior notes.

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Following the news release, shares of the company gained 4.12% to close at $17.96 in Wednesday’s trading session.

As per the terms of the transaction, KSP will purchase convertible senior notes worth $100 million at a conversion price of $20 per share of Eos’ common stock. The interest rate on cash payments will be 5% per year, while interest payments utilizing additional notes will be charged at a rate of 6% per year. The notes will mature in June 2026, unless earlier repurchased, redeemed or converted.

CEO of Eos Joe Mastrangelo said, “Koch brings a strong track record of investing in disruptive technology companies and we look forward to deploying this capital to accelerate growth and continue to drive shareholder value.” (See Eos stock chart on TipRanks)

The stock has a Moderate Buy consensus rating based on 1 Buy. Northland Securities analyst Subash Chandra reiterated a Buy rating on the stock with a price target of $27 (50.3% upside potential). Shares of the company have gained 67.9% over the past year.