Expion Energy Inc. (NASDAQ: XPON) said it raised $9.0 million through a private placement of 8% convertible debentures and warrants, with net proceeds of approximately $8.2 million after fees and expenses.
The offering closed on Thursday, with the debentures initially valued at $1,000 per unit. Each unit will automatically convert into 9,000 shares of Series A-1 8% Convertible Preferred Stock, subject to shareholder approval and regulatory filings.
The preferred shares can be converted into common stock at an initial price of $4.25 per share. The transaction also includes warrants to purchase up to 2,117,219 common shares at $4.25 per share, exercisable over a five-year term and limited to the initial closing.
Five Narrow Lane LP, an affiliate of interim Chairman and former CEO Joseph Hammer, led the investment. The financing includes provisions allowing investors to purchase up to $91.0 million of additional convertible preferred stock in future closings, pending approval.
Expion Energy intends to use the proceeds primarily for the acquisition of oil and gas assets in Eastern Louisiana, alongside general corporate purposes including working capital. The company, which manufactures lithium iron phosphate batteries for recreational vehicles, marine applications, and industrial uses, operates through more than 300 dealers nationwide.
The offering was conducted under an exemption from Securities Act registration and requires Expion Energy to file a registration statement for the resale of common shares issuable upon conversion of the preferred stock and exercise of the warrants.
