Energy Services of America Corporation (NASDAQ:ESA) saw its shares slide roughly 6% on Thursday after the company disclosed terms for an underwritten public offering of common stock.
The offering was priced at $11.50 per share for 1.74 million shares, with the underwriter holding a 30-day option to purchase an extra 261,000 shares. The company estimates the sale will produce approximately $20 million in gross proceeds before underwriting discounts and commissions, and that figure could rise to about $23 million if the full option is exercised.
Use of proceeds and corporate intent
Energy Services of America said it plans to deploy the net proceeds for general corporate purposes, working capital and possible acquisitions. The company also explicitly stated that it has "no current plans, arrangements or understandings relating to any specific acquisition or similar transaction."
Transaction timeline and advisors
The offering is expected to close on February 20, 2026, subject to customary closing conditions. Lake Street Capital Markets, LLC is acting as the sole underwriter for the deal, while Roth Capital Partners served as the company’s financial advisor.
Market reaction
The drop in the share price reflects a common investor response to new public offerings, which can dilute existing equity holders. The company and its advisors finalized the pricing details before the market moved on the news, leaving the planned use of funds and the closing timeline as the primary points of forward-looking detail disclosed.
Contextual note
All elements in this report are based on the terms and statements provided by Energy Services of America in its offering announcement and related disclosures.