Shares of software-as-a-service energy management company CleanSpark (NASDAQ:CLSK) dropped almost 20% this morning, before moderating losses to 15%, as of 3:50 p.m. EDT.
The company reported it has priced its previously announced public stock offering at $9 per share, 28% below Tuesday's closing price. Proceeds from the offering, which is expected to close later this week, will be used for working capital requirements, the growth of CleanSpark's sales and marketing team, and product development including software enhancements and improvements, the company said.
The company also said the funds would be used for other general corporate purposes, including potential mergers and acquisitions, though none are currently imminent.
In its most recent earnings report for the period ending June 30, 2020, CleanSpark said revenue had jumped 181% compared to the same quarterly period in 2019. But the company still reported a net loss for the period. The stock offering will bring the company about $40 million in gross proceeds.
CleanSpark's software-as-a-service model manages microgrids, a "localized group of electricity sources and storage (batteries) that normally operate connected to the traditional grid."
The software is used to optimize microgrid efficiencies for businesses and government entities. Earlier this year, the company acquired GridFabric, which licenses a software solution to help power Internet of Things products, including solar panel inverters and electric vehicle charging stations.
The company recently announced it is commissioning its software on a new Central American solar and energy storage microgrid project, which will utilize the Tesla (NASDAQ:TSLA) PowerPack 2 battery energy storage system.