Eos Energy Enterprises, Inc. (NASDAQ:EOSE) shares are trading higher Monday after the company announced a strategic investment of up to $315.5 million from an affiliate of Cerberus Capital Management LP.
The Details:
Eos Energy said both companies believe the investment will accelerate Eos' operating capabilities and industry position. The investment by Cerberus is structured as a $210.5 million delayed draw term loan that is partially based upon achieving operational milestones, and a $105 million revolver that Eos may draw upon, if required, at Cerberus' discretion.
"We are thrilled to partner with Cerberus at a pivotal moment in Eos' history. This investment provides the critical funding needed to execute our profitability roadmap, while also providing our customers with the confidence that Eos can produce at scale," said Eos CEO Joe Mastrangelo.
"Cerberus' investment, combined with their deep operational and technical knowledge, enables us to expand our manufacturing capacity, streamline our supply chain, and strengthen our market position."
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Eos Energy shares are moving on heavy trading volume following the announcement. According to data from Benzinga Pro, more than 22.3 million shares have already been traded in the session, compared to the stock's 100-day average of 5.511 million shares.
How To Buy EOSE Stock:
By now you're likely curious about how to participate in the market for Eos Energy Enterprises – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy 'fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.
In the the case of Eos Energy, which is trading at $1.06 as of publishing time, $100 would buy you 94.34 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to 'go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
EOSE Price Action: According to Benzinga Pro, Eos Energy shares are up 15.6% at $0.99 at the time of publication Monday.
Image: Pete Linforth from Pixabay