Stock Markets January 28, 2026

Solid Power Announces $130 Million Registered Direct Offering; Shares Slip After Deal

Colorado battery developer agrees sale of common stock and warrants to a single institutional investor as it seeks funds for next-generation battery work

By Avery Klein SLDP
Solid Power Announces $130 Million Registered Direct Offering; Shares Slip After Deal
SLDP

Solid Power Inc. said it has entered a securities purchase agreement with a single sector-focused institutional investor to sell shares and warrants in a registered direct offering expected to raise about $130 million in gross proceeds. The announcement was followed by a 6.6% decline in the company's stock on Wednesday.

Key Points

  • Solid Power filed a registered direct offering expected to raise about $130 million in gross proceeds through the sale of common shares, pre-funded warrants, and common warrants.
  • The offering is with a single sector-focused institutional investor and is priced at $5.70 per common share with warrants; pre-funded warrants are priced at $5.699 with accompanying warrants; common warrants are exercisable at $7.25 and expire seven years from issuance.
  • Sectors impacted include battery technology and electric vehicle supply chains, as well as equity markets where the offering and potential dilution affect investors and capital formation.

Shares of Solid Power Inc (NASDAQ:SLDP) fell 6.6% on Wednesday after the Colorado-based solid-state battery developer disclosed plans for a registered direct offering aimed at securing approximately $130 million in gross proceeds.

Under the terms of the securities purchase agreement, the company will sell 17 million shares of common stock, pre-funded warrants to acquire 5.8 million shares, and common warrants that could be exercised for up to 45.6 million shares. The counterparty to the agreement is described as a single sector-focused institutional investor.

The pricing is set at $5.70 per share of common stock when sold with accompanying warrants, and at $5.699 per pre-funded warrant when issued with accompanying warrants. The common warrants issued in the transaction will be immediately exercisable at $7.25 per share and will carry a seven-year term from the date of issuance.

Solid Power said it intends to apply the net proceeds from the registered direct offering toward working capital and general corporate purposes related to its development of next-generation batteries. The company reported about $336.5 million in total liquidity as of December 31, 2025.

J.P. Morgan Securities LLC and A.G.P./Alliance Global Partners are serving as placement agents for the offering. The company stated the transaction is expected to close around January 29, 2026, subject to customary closing conditions.

In its regulatory filings, Solid Power reported roughly 201.2 million shares of common stock outstanding as of December 31, 2025. The combination of additional shares, pre-funded warrants and exercisable common warrants will expand the pool of potential common equity should warrant holders choose to exercise.


Context and near-term considerations

The company emphasized that proceeds will support ongoing development efforts for next-generation solid-state batteries and general corporate needs. The announced size and structure of the financing, together with immediately exercisable common warrants, outline the path for potential future equity issuance and cash inflows tied to warrant exercise.

Market reaction

The stock's decline on the announcement reflects investor response to the fundraising and its dilutive components. The offering is being placed through major brokerage placement agents and is conditioned on customary closing steps before it is completed.

Risks

  • Dilution risk to existing shareholders from the issuance of 17 million shares, pre-funded warrants for 5.8 million shares, and common warrants covering up to 45.6 million shares - this impacts equity holders and market capitalization.
  • Execution and closing risk since the offering is expected to close around January 29, 2026 and remains subject to customary closing conditions, which could delay or alter the transaction and affect capital availability.
  • Uncertainty in the timing and amount of cash inflows tied to potential warrant exercises - while common warrants are immediately exercisable at $7.25, whether and when they will be exercised is not specified, affecting liquidity planning and capital structure.

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