AmpliTech Group Announces Closing of $2.2 Million and $3.1 Million Registered Direct Offerings

Rhea-AI Summary

AmpliTech Group (AMPG) has successfully closed two registered direct offerings with aggregate gross proceeds of $5.3 million. The closings occurred on December 13 and December 18, 2024, with individual offerings of $2.2 million and $3.1 million respectively. Maxim Group served as the sole placement agent for both offerings. The securities were issued under a shelf registration statement on Form S-3, which was declared effective by the SEC on April 24, 2024. The company, which specializes in signal processing components for satellite and 5G/6G communications networks, will receive the proceeds before deducting placement agent fees and other offering expenses.

Positive

• Secured $5.3 million in gross proceeds through registered direct offerings
• Successfully completed two separate offerings within a week

Negative

• Potential dilution of existing shareholders' value
• Additional expenses from placement agent fees and offering costs will reduce net proceeds

Insights

Financial Analyst

The closing of $5.3 million in registered direct offerings marks a significant capital raise for AmpliTech Group, though it comes at a critical time given their $28.2 million market cap. This financing method, split between $2.2 million and $3.1 million tranches, suggests a strategic approach to maintaining operational flexibility while minimizing market impact. The involvement of Maxim Group as sole placement agent indicates institutional backing, though the terms and pricing details absent from the announcement leave questions about potential dilution effects. For a small-cap technology company in the competitive signal processing components sector, this capital injection represents approximately 18.8% of their market capitalization - a substantial proportion that could either fuel growth initiatives or serve as a important buffer against operational challenges. The shelf registration structure provides flexibility for future capital raises, though the timing and size suggest some urgency in securing these funds.

In simpler terms: Think of this like a company getting a new credit line - they've secured access to money they can use to grow or keep the business running smoothly. The amount is significant relative to the company's size, which could be either good news (if used for growth) or concerning (if needed for survival).

Tech Industry Analyst

Operating in the critical signal processing components sector for satellite and 5G/6G communications, AmpliTech's capital raise comes at a pivotal moment in the telecommunications infrastructure buildout. Their focus on state-of-the-art components for both public and private 5G networks, along with their expansion into complete 5G/6G systems design, positions them in a high-potential market segment. The IC packaging distribution business adds diversification, though the capital intensity of R&D and manufacturing in this sector makes fresh funding important for maintaining competitive advantages.

For the average person: This company makes important parts for modern communication networks - think of them as manufacturing the "brain cells" that help your phone connect to 5G networks or satellites communicate. They've just raised money that could help them develop better products or make more of their existing ones, which is important because creating these advanced components requires significant investment.

HAUPPAUGE, N.Y., Dec. 20, 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 offerings, which closings occurred on December 13 and December 18, 2024.

The aggregate gross proceeds to the Company from the registered direct offerings was approximately $5,300,000, before deducting the placement agent’s fees and other offering expenses. Maxim Group LLC acted as the sole placement agent in connection with the offerings.

The securities issued in the offerings 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. Each 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 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 applicable registered direct offering was filed by the Company with the SEC. Copies of the prospectus supplement relating to the applicable 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 its December 2024 offerings?

AmpliTech Group raised aggregate gross proceeds of $5.3 million through two registered direct offerings, consisting of $2.2 million and $3.1 million, which closed on December 13 and December 18, 2024, respectively.

Who was the placement agent for AMPG's December 2024 offerings?

Maxim Group acted as the sole placement agent for both registered direct offerings.

When were AMPG's December 2024 registered direct offerings completed?

The offerings were completed in two closings: the first on December 13, 2024, and the second on December 18, 2024.

Under what SEC registration was AMPG's 2024 offering conducted?

The offerings were conducted under a shelf registration statement on Form S-3 (File No. 333-278657), which was declared effective by the SEC on April 24, 2024.