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Energy Focus Gears Up for Secondary Offering

Energy Focus Inc. (NASDAQ: EFOI) is a designer and developer of energy-efficient lighting systems and solutions in the United States and internationally. The company saw its shares take a sharp turn down in Friday’s trading session on news of a secondary offering.

The company announced the pricing of a registered underwritten offering of its common stock by certain selling stockholders. The public offering price is set at $17.00 per share. The company is offering 1.5 million shares of its common stock, and the selling stockholders are offering an additional 1.5 million shares of their common stock on the same terms and conditions.

Both the company and the selling stockholders have granted the underwriters a 30-day overallotment option to purchase up to an additional 450,000 shares of common stock. The offering is expected to close on September 16, and it is subject to customary closing conditions.

Oppenheimer is acting as lead book-running manager for the offering, while Canaccord Genuity is acting as a book-running manager and Rodman & Renshaw is acting as co-manager for the offering. The net proceeds from the offering are expected to be used to finance growth efforts within Energy Focus and for working capital and other general corporate purposes.

A few analysts weighed in on the company ahead of this announcement:

  • H.C. Wainright has a Buy rating and increased the price target to $26 from $18.
  • Roth Capital has a Buy rating and raised its price target to $23 from $16.
  • Rodman & Renshaw has a Buy rating and an $18 price target.

So far in 2015, this stock has vastly outperformed the market, with shares are up over 360% year to date and up over 290% in the past 52 weeks.

Shares of Energy Focus were down nearly 27% at $16.88 Friday afternoon. The stock has a consensus analyst price target of $3.95 to $29.20.

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By Chris Lange