By Chris Wack

Capstone Green Energy Corp. shares were down 22% to $5.74 after the company said it would increase the size of its previously announced public offering.

The company said the underwriter has agreed to purchase 1.9 million common shares at $5.25 a share, up from 952,000 shares.

The closing of the offering is expected on or about June 22.

The company has also granted to the underwriter a 30-day option to purchase up to an additional 286,000 shares at the public offering price.

The proceeds of the offering are expected to be $10 million. Capstone intends to use the proceeds from the offering for working capital, general corporate purposes and growth initiatives, including organic growth and potential future acquisitions.

The stock hit its 52-week high of $15.28 on Jan. 7.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

June 18, 2021 13:27 ET (17:27 GMT)