Energy Vault registers 33.25M shares for resale by investor from dilutive convertible debentures

summarizeSummary

Energy Vault Holdings, Inc. filed to register 33.25 million shares for resale by YA II PN, Ltd., stemming from the conversion of $65 million in convertible debentures, which could lead to significant dilution without providing new capital to the company.

check_boxKey Events

• Registration of Shares for Resale

  Energy Vault Holdings, Inc. registered up to 33,251,333 shares of common stock for resale by YA II PN, Ltd., a selling stockholder.

• Source of Shares: Convertible Debentures

  These shares are issuable upon conversion of senior unsecured convertible debentures totaling $65.0 million, issued in three tranches between September and December 2025.

• Significant Potential Dilution

  The registered shares represent approximately 19.99% of the company's common stock outstanding as of the initial closing date of the debentures, indicating substantial potential dilution.

• No Proceeds to Company from Resale

  The company will not receive any proceeds from the sale of common stock by the Selling Stockholder, as the capital was already received from the debenture issuance.

auto_awesomeAnalysis

Energy Vault Holdings, Inc. has registered a substantial number of shares for resale by a selling stockholder, YA II PN, Ltd., which were issued or are issuable upon conversion of senior unsecured convertible debentures. This registration represents significant potential dilution, as the 33.25 million shares equate to approximately 20% of the company's outstanding common stock as of the initial closing date of the debentures. The company will not receive any proceeds from these resales, meaning the capital raised from the debentures has already been received, but the market will now face an overhang of shares that can be sold by the investor. The debentures feature variable conversion prices, allowing the investor to convert at a discount to the market price, which is a characteristic of highly dilutive financing structures. Furthermore, the company is prohibited from using its at-the-market (ATM) equity program until the third tranche of debentures is repaid, limiting its future financing flexibility.