Enovix Declares Warrant Dividend That Could Retire Its $172.5 Million Of 2028 Notes
Holders can pay the $3.00 exercise price with 2028 convertible notes at face value, and Enovix also bought back $100 million of 2030 notes.
Enovix, which makes lithium-ion batteries for phones, drones and defense customers, declared a warrant dividend on Wednesday that lets holders pay with its 2028 convertible notes at face value. Every warrant exercised that way would retire debt without Enovix spending cash, though how much debt goes away depends on what holders choose to do.
How the warrants work
Stockholders of record on November 13 get one warrant for every four shares, and the warrants are expected to be distributed on or about November 18. Each carries a $3.00 exercise price, payable in cash or with 2028 notes at face value. The 2030 notes cannot be used to pay.
About 65.6 million warrants would be issued, per the FAQ exhibit: around 54.8 million to stockholders and 10.8 million to noteholders, who receive them on an as-converted basis without converting. Full exercise would bring in about $177.2 million in cash and surrendered notes combined.
The warrants expire April 28, 2028. They expire earlier if the stock's daily volume-weighted average price reaches $3.30 or more on 20 of any 30 consecutive trading days. They are expected to trade on Nasdaq as ENVXW from about November 19, subject to approvals.
Debt retired, but only if holders choose
The $177.2 million total exceeds the $172.5 million of 2028 notes outstanding. If enough holders pay with notes, the whole issue could be retired, the FAQ says; the amount retired and cash raised depends on how many warrants are exercised and how holders pay. Cash exercises would instead add liquidity, including for expanding Korean drone battery capacity.
"Today's warrant dividend extends that work to the 2028 Notes by retiring that debt without spending cash," said Ryan Benton, Interim CEO. T.J. Rodgers, Executive Chairman, called the structure non-dilutive because every holder gets the same one-for-four deal.
Separately, Enovix repurchased $100 million of 2030 notes for about $63.1 million, roughly a 37% discount to par. The buyback raised net cash by about $36.9 million, the company said.
Drone orders and a $512 million cash pile
Enovix held about $512 million in cash, cash equivalents and investments, including restricted cash, as of October 4, 2026, according to the FAQ. In its 2025 warrant dividend, about 26.5 million warrants were exercised after early expiration, generating roughly $232.1 million in gross proceeds.
On October 12, the company reported preliminary, unaudited third-quarter revenue of $11.0 million, up 38% from a year earlier. Drone and defense customers made up about 70% of it. Enovix is also investing $19 million to double drone battery capacity at its South Korea plant.
Enovix reports full third-quarter results on November 12 and will discuss the warrant distribution on the call.
Sources
- 8-K Filing — Enovix Corp (ENVX) — SEC EDGAR
- Exhibit envx8k-10282026ex991pr.htm — Enovix Corp 8-K exhibit — SEC EDGAR
- Exhibit envxwarrantdividendfaqs-.htm — Enovix Corp 8-K exhibit — SEC EDGAR
- Enovix Declares New Warrant Dividend — globenewswire.com
