Applied Energetics Announces Completion of $4.8 Million Private Placement Offering

Rhea-AI Summary

Applied Energetics (OTCQB:AERG), a leader in advanced optical and ultrashort pulse laser technologies, has successfully completed a private placement offering raising approximately $4.8 million. The company issued 6,405,666 shares of common stock (or pre-funded warrants) to accredited investors at $0.75 per share (or $0.749 per pre-funded warrant).

The pre-funded warrants can be exercised immediately at $0.001 per share, with a restriction preventing holders from acquiring 5% or more of common stock. The company plans to utilize the proceeds for product development, strategic partnerships, and general corporate purposes. The offering closed on January 14, 2025.

Positive

• Secured $4.8 million in new funding
• Attracted both new and existing accredited investors

Negative

• Dilution of existing shareholders through issuance of 6.4M new shares
• Stock offering priced at $0.75 per share indicates relatively low valuation

TUCSON, AZ / ACCESSWIRE / January 15, 2025 / Applied Energetics, Inc. (OTCQB:AERG), a leader in the field of advanced optical technologies and ultrashort pulse laser (USPL) technologies, today announced that it has closed a private placement (the "Private Placement") of 6,405,666 million shares of its common stock (or pre-funded warrants in lieu thereof) to a group of new and existing accredited investors at a purchase price of $0.75 per share (or $0.749 per pre-funded warrant in lieu thereof).

The pre-funded warrants are exercisable immediately upon issuance at a price of $0.001 per share until exercised in full but may not be executed in any amount which would cause the holder thereof to beneficially own 5% or more of the company's common stock.

The aggregate proceeds to the Company from the private placement are expected to be approximately $4.8 million. The Company intends to use the aggregate proceeds for product development, investment in one or more strategic partnerships, and general corporate purposes.

The closing of the offering occurred on January 14, 2025, subject to the satisfaction of customary closing conditions.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Applied Energetics, Inc.

Applied Energetics, Inc., a leader in Advanced Optical Technologies and Ultrashort Pulse Directed Energy Solutions, utilizes patented, dual-use laser and optical technologies to advance critical industries, including defense, national security, biomedical and manufacturing. Applied Energetics pioneered and holds all crucial intellectual property rights to the development and use of Laser Guided Energy technology and related solutions for defense, security, commercial, and medical applications.

Forward Looking Statements

Certain statements in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include all statements that do not relate solely to the historical or current facts and can be identified by the use of forward-looking words such as "may," "believe," "will," "expect," "project," "anticipate," "estimates," "plans," "strategy," "target," "prospects," or "continue," and words of similar meaning. These forward-looking statements are based on the current plans and expectations of our management and are subject to a number of uncertainties and risks that could significantly affect our current plans and expectations, as well as future results of operations and financial condition and may cause our actual results, performances or achievements to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. We do not assume any obligation to update these forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting such forward-looking statements.

Applied Energetics, Inc. Investor information contact:

Kevin McGrath, Managing Director
Cameron Associates, Inc.
kevin@cameronassoc.com
T: 646-418-7002

SOURCE: Applied Energetics, Inc.

View the original press release on accesswire.com

FAQ

How much did Applied Energetics (AERG) raise in its January 2025 private placement?

Applied Energetics raised approximately $4.8 million through its private placement offering completed on January 14, 2025.

What is the price per share for AERG's January 2025 private placement?

The private placement was priced at $0.75 per share of common stock, or $0.749 per pre-funded warrant.

How many shares did AERG issue in its January 2025 private placement?

Applied Energetics issued 6,405,666 shares of common stock (or pre-funded warrants in lieu thereof).

What will AERG use the $4.8 million private placement proceeds for?

The company plans to use the proceeds for product development, investment in strategic partnerships, and general corporate purposes.

What restrictions apply to AERG's pre-funded warrants from the January 2025 offering?

The pre-funded warrants cannot be exercised if doing so would cause the holder to beneficially own 5% or more of the company's common stock.