AmpliTech Group Announces Closing of $1.4 Million Registered Direct Offering

Rhea-AI Summary

AmpliTech Group (Nasdaq: AMPG) has closed its previously announced registered direct offering, selling 1,603,259 shares of common stock (or pre-funded warrants) at $0.92 per share. The offering raised approximately $1.475 million in gross proceeds before deducting placement agent fees and expenses. Maxim Group served as the sole placement agent for the offering. The Securities were offered through a shelf registration statement on Form S-3, which was declared effective by the SEC on April 24, 2024.

Positive

• Secured $1.475 million in additional funding through stock offering

Negative

• Potential dilution of existing shareholders due to issuance of 1,603,259 new shares
• Low offering price of $0.92 per share indicates weak market conditions

Insights

Financial Analyst

This $1.4 million registered direct offering at $0.92 per share represents significant dilution for a micro-cap company with just a $10.5 million market cap. The pricing shows a concerning discount to recent trading levels, suggesting weak demand and challenging market conditions. With 1,603,259 new shares being issued, this represents substantial dilution for existing shareholders.

While the capital raise provides needed working capital, the terms and size relative to market cap raise red flags about the company's financial health and ability to fund operations. The involvement of Maxim Group as placement agent likely came with significant fees, further reducing net proceeds. The shelf registration suggests more dilutive offerings could follow, creating additional pressure on the stock price.

HAUPPAUGE, N.Y., Nov. 26, 2024 (GLOBE NEWSWIRE) -- AmpliTech Group, Inc. (Nasdaq: AMPG, AMPGW) (the “Company”), a designer, developer, and manufacturer of state-of-the-art signal processing components for satellite, Public and Private 5G, and other communications networks, including the design of complete 5G/6G systems and a global distributor of packages and lids for integrated circuits assembly, today announced it has closed on its previously announced registered direct offering for the sale of 1,603,259 shares of common stock (or pre-funded warrants in lieu thereof) (“the Securities”) at an offering price of $0.92 per share.

The gross proceeds to the Company from the registered direct offering were approximately $1,475,000 before deducting the placement agent’s fees and other offering expenses. Maxim Group LLC acted as the sole placement agent in connection with the offering.

The Securities were offered pursuant to a shelf registration statement on Form S-3 (File No. 333-278657), which was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on April 24, 2024. The offering was made only by means of a prospectus supplement that forms a part of such registration statement.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these Securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. A prospectus supplement relating to the Securities offered in the registered direct offering was filed by the Company with the SEC. Copies of the prospectus supplement relating to the registered direct offering, together with the accompanying prospectus, can be obtained at the SEC's website at www.sec.gov or from Maxim Group LLC, 300 Park Avenue, New York, NY 10022, Attention: Syndicate Department, or via email at syndicate@maximgrp.com or telephone at (212) 895-3500.

About AmpliTech Group

AmpliTech Group, Inc., comprising five divisions—AmpliTech Inc., Specialty Microwave, Spectrum Semiconductors Materials, AmpliTech Group Microwave Design Center, and AmpliTech Group True G Speed Services is a leading designer, developer, manufacturer, and distributor of cutting-edge radio frequency (RF) microwave components and 5G network solutions. Serving global markets, including satellite communications, telecommunications (5G & IoT), space exploration, defense, and quantum computing, AmpliTech Group is committed to advancing technology and innovation.

Forward-Looking Statements

All statements in this release that are not based on historical fact are “forward-looking statements” including within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The information in this announcement may contain forward-looking statements and information related to, among other things, statements regarding the Company, its business plan and strategy, and its industry. Such forward statements include, but are not limited to, that the booking of orders and anticipation of booking of orders, including LNB and 5G products and Fujitsu Spain, will lead to sales of products, These statements reflect management’s current views with respect to future events based on information currently available and are subject to risks and uncertainties that could cause the Company’s actual results to differ materially from those contained in the forward-looking statements, including risks related to market conditions, and other risks described in the Company’s filings with the SEC. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company does not undertake any obligation to revise or update these forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events.

Contacts:

Corporate Social Media
Twitter: @AmpliTechAMPG
Instagram: @AmpliTechAMPG
Facebook: AmpliTechInc
Linked In: AmpliTech Group Inc

Investor Social Media
Twitter: @AMPG_IR
StockTwits: @AMPG_IR

Company Contact:
Jorge Flores
Tel: 631-521-7831
Investors@amplitechgroup.com

FAQ

How much did AmpliTech Group (AMPG) raise in their November 2024 offering?

AmpliTech Group raised approximately $1.475 million in gross proceeds through a registered direct offering of common stock and pre-funded warrants.

What was the price per share for AMPG's November 2024 registered direct offering?

The offering price was $0.92 per share of common stock or pre-funded warrant.

How many shares did AMPG sell in their November 2024 offering?

AmpliTech Group sold 1,603,259 shares of common stock (or pre-funded warrants in lieu thereof).

Who was the placement agent for AMPG's November 2024 offering?

Maxim Group acted as the sole placement agent for the offering.