08:32 AM EDT, 06/17/2024 (MT Newswires) -- iPower (IPW) said Monday it has signed a definitive securities purchase agreement to purchase and sell its 2.1 million common shares at $2.40 apiece for gross proceeds of roughly $5 million in a registered direct offering.

The company will also issue warrants to buy an equal amount of its common shares at $2.40 per share, iPower added.

The offering is anticipated to close around Tuesday, iPower said. It plans to utilize the net proceeds for growth initiatives, and general corporate purposes.

Shares of the company were down over 22% in recent Monday premarket activity.

Price: 2.5691, Change: -0.73, Percent Change: -22.15