Eos Energy prices $75M stock offering to fund Frontier Power venture

Eos Energy Enterprises (NASDAQ: EOSE) announced the pricing of a registered direct offering of 13,683,634 shares of common stock and 6,004,378 warrants to Hudson Bay Capital Management, according to a company statement.

Each share is being offered at $5.481, with 0.4388 of an accompanying warrant included per share. Each warrant carries an exercise price of $5.481 per share. The offering is expected to close on July 1, 2026, subject to customary closing conditions.

Gross proceeds from the offering are expected to total approximately $75 million, excluding any future warrant exercises. Eos said it plans to use the net proceeds, along with funds from a proposed rights offering, to finance its contribution to Frontier Power USA Parent, LLC (FPUSA).

Hudson Bay Capital Management has also committed to invest $50 million directly into FPUSA, subject to certain conditions. That commitment brings FPUSA's expected total equity investment to approximately $375 million, assuming full subscription in the rights offering. Under FPUSA's planned financing model, that equity base is expected to support more than $1.5 billion of deployable project capital at approximately 75% loan-to-value.

FPUSA currently holds a pipeline of approximately 16 GWh of long-duration energy storage projects across U.S. markets. Of that total, approximately 2.7 GWh represents what the company describes as high-probability conversion opportunities, including approximately 1.2 GWh expected to be ready to sign.

Eos and FPUSA hold a previously announced 2 GWh manufacturing capacity reservation agreement, with approximately 25% already allocated to projects advancing toward execution.

The offering is being made pursuant to an effective shelf registration statement under the Securities Act of 1933.

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