Why Enovix Stock Got Crushed This Week
Next-generation battery maker Enovix (NASDAQ: ENVX) did poorly on the stock exchange over the past few trading days. In fact, according to data compiled by S&P Global Market Intelligence, its stock price eroded by more than 19% this week. It seems investors were rather unimpressed by the company's latest acquisition.
On Wednesday, Enovix announced that it had purchased Routejade, a privately held peer in South Korea, in a cash-and-stock deal. Enovix is parting with roughly 6.2 million shares of its common stock, plus $16.5 million in cash, to effect the purchase.
Like its acquirer, Routejade is a battery manufacturer. It is a developer and supplier of lithium-ion batteries that targets the consumer, health, and military segments of the market. More importantly for Enovix's purposes, it holds a patent on encapsulation technology that can be applied to different battery form factors. Enovix said that this will help it to address various customer requirements in this area.
Source Fool.com
