NEW YORK, NY / ACCESSWIRE / September 19, 2023 / Pomerantz LLP is investigating claims on behalf of investors of Eos Energy Enterprises, Inc. ("Eos" or the "Company") (NASDAQ:EOSE). Such investors are advised to contact Robert S. Willoughby at [email protected]or 888-476-6529, ext. 7980.
The investigation concerns whether Eos and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On July 27, 2023, Iceberg Research ("Iceberg") published a report entitled "62% Of $Eose's Backlog Is With Financially Distressed Bridgelink Whose Renewable Energy Assets Were Foreclosed And Auctioned Off In May." Therein, Iceberg alleged that, while the fate of Eos "rests on its touted 2.2 GWh energy storage system backlog, which EOS valued at $535 million at the end of March 2023," the backlog "is fake." Iceberg elaborated that "Bridgelink Commodities, accounts for half of EOS's backlog by MWh or ~62% ($331 million) of its total dollar value" but that Iceberg "decided to dig into this customer's background and uncovered a group whose assets were recently seized by a creditor and sold in an auction." Iceberg added that "[w]e wonder how EOS can still present Bridgelink as a major client" and that "EOS continues to include Bridgelink in its backlog, and is likely to have made the same representations when applying for the Department of Energy loan." Iceberg concluded that its findings "completely undermine the authenticity of EOS Energy's promoted backlog."
On this news, Eos's stock price fell $0.83 per share, or 23.85%, to close at $2.65 per share on July 27, 2023.
Then, on July 27, 2023, after the market closed Eos issued a press release entitled "Eos Energy Enterprises Provides Preliminary Results & Issues Statement Regarding Its Customer Commitments and Backlog." Therein, the Company attempted to address the issues that Iceberg identified. Eos stated that "[t]he Company believes that its customer, Bridgelink Commodities, LLC, is a separate legal entity which is not implicated in the legal matters highlighted in today's statements" and that "[t]his customer, representing 45% of the Company's backlog, reconfirmed today that it continues to build pipeline and is actively seeking financing for energy storage projects covered by Eos's multi-year Master Supply Agreement." Eos also stated that "[t]he Company continues to progress through the Department of Energy (DOE) Loan Programs Office's (LPO) process for its Title XVII loan and is awaiting a conditional approval decision which may be taking longer due to changes from the recent Interim Final Rule announced in May."
On this news, Eos's stock price fell $0.39 per share, or 14.7%, to close at $2.26 per share on July 28, 2023.
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SOURCE: Pomerantz LLP