Shares of ADS-TEC Energy PLC (ADSE) plummeted 10.13% in intraday trading on Thursday, following the company's announcement of a $50 million registered direct offering of senior secured convertible notes. The sharp decline suggests that investors are concerned about the potential dilutive effects of the convertible notes and the terms of the deal.

The company, known for its battery-based energy storage and ultra-fast EV charging solutions, completed the offering on May 2, 2025. The transaction involves a senior secured convertible note due in 2028, to be disbursed in two tranches of $15 million and $35 million. While the capital infusion is intended to support ADS-TEC Energy's strategic expansion across Europe and North America, the market's reaction indicates skepticism about the long-term impact on shareholder value.

ADS-TEC Energy plans to use the net proceeds for general corporate purposes, with a focus on developing a full-service provider model. This model aims to generate multi-revenue streams from ultra-fast charging, energy trading, and advertising. Despite the company's ambitions to establish a sustainable, recurring revenue model, the significant stock price drop reflects investors' immediate concerns about the financing structure and its potential implications for the company's financial health and future growth prospects.