EnergyX raises $75M from small investors under SEC Regulation A

In the United States, EnergyX has successfully raised over $80 million from retail investors, including a significant $75 million offering that recently closed. This fundraising strategy leverages SEC Regulation A, which permits companies to gather funds from retail investors with limited regulatory oversight. Despite being a private company, EnergyX has not yet delivered any vehicles to customers, raising questions about its operational timeline. The company is focused on developing its direct lithium extraction (DLE) technology, which is crucial for the growing electric vehicle market. Teague Egan, the CEO, emphasizes the importance of achieving substantial positive EBITDA before considering an IPO. The company plans to conduct a Series C funding round to secure additional capital for its commercial projects. This approach allows EnergyX to maintain more control over its operations and reduces reliance on traditional venture capitalists, who often demand preferred stock in exchange for investment. Egan's strategy includes selling DLE equipment to major lithium mining companies, which could further enhance the company's revenue streams. The Regulation A offering is expected to sustain EnergyX for at least two more years, providing a buffer against the pressures of immediate public offerings or venture capital demands.