Eos Energy Enterprises (NASDAQ: EOSE) announced the completion of a rights offering that, combined with commitments from Hudson Bay Capital Management and Cerberus Capital Management, raised approximately $263 million in gross equity for its Frontier Power USA (FPUSA) joint venture, exceeding the $250 million target set when the venture was announced.

The three investors contributed separate amounts: Eos provided approximately $113 million through its rights offering and a previously announced equity offering, Cerberus Capital Management committed $100 million, and Hudson Bay Capital Management contributed $50 million. The rights offering alone raised approximately $37.7 million in gross proceeds before expiring on July 21, 2026.

According to the company, the equity base, combined with project debt at approximately 75% loan-to-value, is expected to support more than $1 billion in deployable project capital.

FPUSA, a joint venture between Eos and Cerberus Capital Management, is structured to develop, finance, own, and operate long-duration energy storage projects using Eos zinc-based battery technology. The platform currently has a pipeline of approximately 16 GWh of opportunities, with about 5.0 GWh purchased, selected, or under active review. Of that, approximately 1.8 GWh is under construction or approaching notice to proceed.

"When we announced Frontier Power USA, we set a target of approximately $250 million in equity raised to capitalize the platform," said Joe Mastrangelo, Eos Chief Executive Officer. "Today that target is expected to be exceeded."

The initial capitalization of FPUSA is expected to close in early August, subject to customary closing conditions, including receipt of required third-party approvals such as Department of Energy approval and the execution of definitive agreements. The company noted that completion of the transactions cannot be assured.