Federal government could become shareholder in Eos Energy

Eos Energy, a battery manufacturer that recently announced plans to move its headquarters to Pittsburgh, could be the latest company to be owned in part by the federal government.

Eos (Nasdaq: EOS) announced in a regulatory filing with the Securities and Exchange Commission that it has entered into an agreement with the Department of Energy to provide a warrant to purchase up to 570,000 shares of its common stock for 1 cent a share. A separate filing from the company indicates that this agreement was made “in order to, among other things, permit” a $500 million private placement offering for more equity.

If left unexercised, the warrants will automatically convert in five years or if Eos’s stock price rises above $30 per share. The filing also notes that the Department of Energy “will not have the rights or privileges of holders of Common Stock of the company and any voting rights until it exercises the Warrant and receives shares of Common Stock.” Eos is also in the process of issuing a private placement of $500 million in equity.