EnergyX Stock: Can it Become a Viable Business?

Explore opportunities to own EnergyX stock before the IPO date. The company is conducting a Regulation A+ crowdfunding round as of September 2024. 

Access more established pre-IPO startups like OpenAI, ServiceTitan, and Databricks via the Fundrise Innovation Fund. $10 minimum investment. 

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Notable EnergyX News

09/26/2024: EnergyX raises $50 million, opens new production facility
06/28/2024: SEC Form 253G2
06/20/2024: EnergyX Announces Major Lithium Dev in Ark-La-Tex region
05/15/2024: SEC Form 253G2
Older news…

About EnergyX

EnergyX (Energy Exploration Technologies, Inc.) is a Puerto Rico and Austin, Texas-based startup founded in 2018 by Teague Egan, an entrepreneur and showy self-promotor with roots in the entertainment industry. He boasts a “2036 plan to become President of the United States” on his website.

Egan founded the company after visiting a popular Bolivian tourist destination, Salar de Uyuni, a massive salt flat near the southwest border with Chile. 

During his visit, Egan learned the area was among the world’s largest lithium deposits, a critical metal for battery production. 

The company is now focused on sustainable lithium extraction and battery technology.

Its core innovation is the Lithium Ion Transport and Separation (LiTAS™), a platform of lithium extraction technologies for and processing mechanisms that use membranes, solvents, and adsorbents that can increase lithium recovery rates to over 90%, versus 30-40% for traditional methods (evaporation pools), increasing lithium output by up to 300%.

EnergyX’s processes significantly increase sustainability by minimizing using fresh water, energy, and land.

According to a regulatory filing in June 2024:

To date, we have not generated any revenue from technology service fees or product sales, and we do not anticipate generating any revenue from the sale of products for the foreseeable future.

Here’s an introduction video featuring Teague Egan explaining the business opportunity of EnergyX:

Ownership

EnergyX is an early-stage startup that has executed multiple fundraising campaigns to raise funds. It has also tapped venture capital and private equity for substantial funding rounds and debt facilities. 

Teague Egan owns 51% of the outstanding shares of EnergyX as of Summer 2024.  

Other equity holders include crowdfunding investors, employees, and venture capital investment firms.

Venture capital partners include Global Emerging Markets, GM Ventures, Helios Capital, The University of Texas at Austin, Mirza Canada, Elohim Partners, IMM Investment Global, and Posco.

What is the EnergyX stock price?

The EnergyX stock price is $9.50 as of September 2024. This is based on information from the SEC Offering Circular and company website. 

According to the document: 

As of June 24th, 2024, we have sold 1,927,141 Shares at $8/share and up to 2,648,153 Shares at $9/share. After increasing the price per Share to $9.50, the Company may issue up to 3,026,263 Shares.

This is not a market price since EnergyX is not publicly traded. More reliable pre-IPO marketplace data is unavailable. 

EnergyX Funding Rounds

EnergyX has completed multiple funding rounds from various investors and crowdfunding regulations. It has raised at least $87 million from investors.  

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The first crowdfunding campaign completed in August 2021, raising $9.7 million through NetCapital.

Another campaign is live as of September 2024. Investors can participate for a limited time at https://invest.energyx.com/.

Valuation

A confirmed EnergyX valuation is not available. In October 2024, CEO Egan told the Wall Street Journal the company’s valuation is $800 million.

The Offering Circular says this: 

The shares of our capital stock, including our Common Stock and Preferred Stock, are sold from time to time at valuations based in part on negotiations with purchasers, and such pricing has been set at the discretion of and based on the business judgment of the company’s board of directors. Such valuations may be, in some cases, deemed arbitrary.

If the summer 2024 Reg A+ crowdfunding campaign is fully subscribed at $9.50, it would value the 54 million Common shares at about $513 million. That doesn’t include about 41 million preferred shares, most of which are owned by Egan. 

Based on the September 2024 stock price, the total valuation of all shares would be close to $1 billion. But as the filing says, such valuations may be deemed arbitrary.  

IPO Potential

It’s too early to be talking about an EnergyX IPO date. EnergyX is an early-stage startup with grand ambitions but has not proven itself to be a viable business yet.

It is likely several years from generating revenue, let alone profitability or an IPO

EnergyX is a high-risk startup whose future is uncertain until it proves its technology and ability to execute its master plan.

If the SPAC market becomes irrational again, EnergyX could be a candidate. However, investors should be wary of investing in pre-revenue companies with arbitrary valuations and unproven track records despite large addressable markets and proprietary technology.

Should You Invest in EnergyX?

EnergyX has conducted heavily-marketed crowdfunding campaigns to attract funding from retail investors. It boasts a compelling story about market potential and how EnergyX is poised to grow because of lithium demand and improved lithium extraction processes. 

However, the company is pre-revenue and has no plans to generate revenue in the foreseeable future, according to its SEC regulatory filing. 

Interested investors may be excited by the business prospects of a high-demand lithium future. The company must make significant capital investments and raise additional private funds over multiple years to refine and implement its technology. 

The future of this company hinges on its ability to attract hundreds of millions of private investment dollars and execute its plan.

Since the company is majority-owned by its founder and CEO, Teague Egan, investments are highly correlated with his leadership.

According to his website, he also aspires to run for President of the United States in 2032 or 2036. So, he may not be fully dedicated to EnergyX in the long term.

Read the Offering Circular and conduct personalized due diligence before considering an investment.

This article does not recommend buying or selling EnergyX stock.

How to Buy EnergyX Stock

EnergyX stock is not publicly traded, but shares are available from time to time via crowdfunding campaigns.

Shares may also become available on secondary marketplaces since so many individual investors participated in crowdfunding rounds (1,200+).

We do not see an IPO as a viable option at this stage or in the future.

1. Invest via the Reg A+ Crowdfunding Campaign

U.S.-based retail investors can invest in EnergyX through a self-administered crowdfunding campaign on the EnergyX website. 

The minimum investment is $1,000. More than three million shares were being sold at $9.50 per share as recently as September 2024.

The Summer 2024 crowdfunding round aims to raise up to $68 million at the time of writing. 

2. Access shares via pre-IPO investing platforms

Ordinary investors can monitor pre-IPO marketplaces for EnergyX shares before the IPO. Investors must be accredited to acquire direct shares. 

A few platforms have evolved to allow equity owners to fund stock options or liquidate holdings before the IPO.

Linqto and Hiive consistently have shares of high-demand private companies available for investment by accredited investors. EquityZen and Forge Global are other platforms to monitor for shares. 

Investors must be accredited to invest directly in pre-IPO stocks. Minimum investments on these platforms range from $2,500 to $50,000.

If EnergyX shareholders lose patience and want to sell shares before other liquidity options, they may turn to private platforms. 

Non-accredited investors can access pre-IPO companies via venture capital funds such as the Fundrise Innovation Fund (review). The fund holds companies such as ServiceTitan, Anthropic, and OpenAI, but EnergyX is not currently a holding in the fund. 

Check out our list of the best pre-IPO investing platforms for current platforms that may have shares available.

Please note: This is a testimonial in partnership with Fundrise and Linqto. We earn a commission from partner links on AccessIPOs.com. All opinions are my own.

Frequently Asked Questions (FAQs)

Is EnergyX publicly traded?

No. EnergyX is not publicly traded. 

What is the EnergyX minimum investment?

The EnergyX minimum investment amount is $1,000. 

What is the EnergyX stock symbol?

There is no EnergyX stock symbol yet because the company is private and has yet to file for an IPO.

Here are a few EnergyX ticker symbol possibilities that are available: 

• EX
• ENRX

Where is the EnergyX S-1 Filing

EnergyX has not released a public S-1 filing. There are no indications that the company has submitted confidential filings or will in the coming years.

Monitor our S-1 filing feed for the latest SEC documents. 

The company has filed several SEC forms due to its crowdfunding activities. See all of EnergyX’s SEC filings here. 

EnergyX News Archive

07/22/2022: EnergyX Secures $450 Million Funding Agreement
12/16/2021: Green-Energy Race Draws an American Underdog to Bolivia’s Lithium

Conclusion

Many of the most innovative companies worldwide are private. But don’t let that deter you if you want to invest.

Private companies like EnergyX are typically more challenging to own because their stocks trade privately, making them inaccessible to many ordinary investors.

However, EnergyX is taking advantage of the loosened equity crowdfunding laws established in 2012. It can raise limited funds through smaller investments from individual investors. 

To entice them, EnergyX has carefully crafted an outward pitch for retail investors, who may be looking for ways to invest in the lithium future. 

But that doesn’t make EnergyX a surefire investment. The company is highly risky, being pre-revenue and far from a viable business.

Therefore, interested retail investors should carefully review the Offering Circular and press releases from the company to determine if it can continue building momentum toward a long-term future. 

The addressable market is there. But that’s not enough. The patented technology and mining processes must be strong enough to live up to the hype and fend off the many lithium extraction competitors. 

Non-accredited investors can buy the company during crowdfunding campaigns. Accredited investors who miss the window and monitor secondary marketplaces for early investors looking to cash out before an alternative exit. 

Monitor this webpage for the latest EnergyX stock news and updates. 

* Disclosure: The web page contains affiliate links from our partners. If a reader opens an account or buys a service from a link in this article, we may be compensated. Opening an account with a broker that provides access to IPOs does not guarantee the customer allocations of specific IPOs. The author is long HOOD and the Fundrise Innovation Fund, but does not have an ownership stake in EnergyX.