Shares of EV charging network operator ChargePoint Holdings closed sharply lower Wednesday after the company said it's raising $232 million via stock sales.
The company's stock was down over 15% at Wednesday's market close.
ChargePoint said in a statement that a group of institutional investors has agreed to purchase $175 million in newly issued stock. The company also disclosed it has raised $57 million during the current fiscal quarter via its existing "at-the-market" stock offering facility, for a total of $232 million in new funds.
CFO Rex Jackson said in a statement that the new funds, together with a recently secured credit line, will support the company into early 2025.
"These raises and our recently announced $150M revolving credit facility are consistent with our announced capital strategy to bolster our balance sheet," Jackson said, adding the company has no further plans to offer stock via its at-the-market facility.
ChargePoint also disclosed that it has altered the terms of a prior $300 million convertible notes deal to give the company another year to pay back the funding but straps it with higher interest payments.
ChargePoint's shares closed at $4.49 on Tuesday, down about 53% since the beginning of 2023.