T1 Energy Inc. saw its stock decline 3.2% on Monday, closing at $9.13, after a new SEC filing provided detailed terms of its proposed acquisition of KORE Power. The filing highlighted that a significant portion of the $32 million purchase price could be settled in common shares, raising concerns among investors about potential dilution.
The stock traded between $8.95 and $10.01 during the session, with volume reaching approximately 36.6 million shares. In after-hours trading, shares edged up to $9.16 just before 6 p.m. New York time.
The Form 8-K, filed on June 8, 2026, outlines that the KORE Power acquisition carries a purchase enterprise value of roughly $32 million, encompassing equity, cash, and assumed debt. Closing is anticipated in the second quarter of 2026. According to the filing, about $9.6 million of the closing payment will be delivered in T1 common shares, with the final share count determined by a 10-day volume-weighted average price (VWAP).
Additionally, the deal includes a potential $9.6 million earn-out for fiscal years 2026 and 2027, payable in stock if certain performance targets are met. There is also a $5.5 million stock payment contingent on a KORE receivable. While using stock preserves cash, it may lead to further dilution if T1 issues additional shares.
T1 Energy is pivoting toward battery storage and data-center power markets through this acquisition. The company stated that KORE's NRI business has deployed approximately 1,100 battery energy storage system (BESS) projects globally. T1 plans to rebrand KORE Power as T1 NRI upon closing.
T1 Chairman and CEO Dan Barcelo praised KORE's NRI team, calling them "extraordinary" in both capability and customer relationships within power infrastructure. KORE CEO Jay Bellows noted that combining the two firms would allow customers to access everything from generation to storage, design, and operations from a single provider.
The company expects the deal to become EBITDA-positive in 2026 and contribute $15 million to $20 million in EBITDA in 2027. EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a measure of operating profitability.
Meanwhile, clean-energy stocks faced a sell-off as broader U.S. indexes moved higher. First Solar fell approximately 1.3%, Canadian Solar dropped 0.7%, and the iShares Global Clean Energy ETF declined about 1.5%. The S&P 500 and Nasdaq gained ground amid a rebound in tech and chip stocks.
Investors remain cautious about the deal's execution risks, including potential delays in closing, project delivery timelines, qualification for factory tax breaks, supply chain dependencies, trade regulations, and T1's need to secure favorable funding terms. The stock's decline reflects ongoing uncertainty as T1 navigates its strategic shift toward storage and data-center power.
