By market open, shares had slipped 16.7% to $2.65.
The renewable energy developer said it is offering 5.5 million shares of its common stock at a price of $2.25 a share, with the offer expected to close on March 19 pursuant to customary closing conditions.
Menomonee Falls, Wis.-based ZBB Energy also said it would grant the underwriter a 30-day option to purchase up to an additional 825,000 shares of common stock.
Funds raised will be used for working capital and general corporate purposes.
National Securities Corporations is acting as sole book-running manager for the offering.
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TheStreet Ratings team rates ZBB ENERGY CORP as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ZBB ENERGY CORP (ZBB) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: