Expion Energy Inc. (NASDAQ: XPON) raised $9.0 million through a private placement of 8% convertible debentures and warrants, according to a company filing. The transaction closed on Thursday, with net proceeds of approximately $8.2 million after placement fees and estimated expenses.
The convertible debentures, priced at an initial stated value of $1,000 per share, are set to automatically convert into 9,000 shares of Series A-1 8% convertible preferred stock, subject to shareholder approval and regulatory filings. The preferred stock can be converted into common shares at an initial price of $4.25 per share.
The offering includes warrants to purchase up to 2,117,219 shares of common stock at $4.25 per share, exercisable over five years and applicable only to the initial closing. Investors retain the option to purchase up to $91.0 million of additional convertible preferred stock in future closings, pending shareholder approval.
Proceeds will fund the acquisition of oil and gas assets in Eastern Louisiana, alongside general corporate purposes including working capital. The transaction was approved by disinterested board members and structured under an exemption from Securities Act registration requirements for accredited investors.
Expion Energy, which manufactures lithium iron phosphate batteries for recreational vehicles, marine applications, and industrial uses, operates through more than 300 dealers nationwide. The company has agreed to file a registration statement for the resale of common stock issuable upon conversion of the preferred stock and exercise of the warrants.
