AmpliTech Group Announces Pricing of $2.2 Million Registered Direct Offering

Rhea-AI Summary

AmpliTech Group (AMPG) has announced a $2.2 million registered direct offering through securities purchase agreements with institutional investors. The company will sell 1,352,500 shares of common stock at $1.60 per share. The offering, managed by Maxim Group as sole placement agent, is expected to close around December 13, 2024.

AmpliTech Group, a designer and manufacturer of signal processing components for satellite and 5G/6G communications networks, will use the proceeds after deducting placement agent fees and offering expenses. The offering is made pursuant to an effective shelf registration statement on Form S-3.

Positive

• Secured $2.2 million in additional funding through institutional investors
• Offering executed through registered direct offering, typically a faster and more efficient process

Negative

• Share price of $1.60 indicates potential dilution for existing shareholders
• Additional shares being issued may put downward pressure on stock price
• Offering expenses and placement agent fees will reduce net proceeds

Insights

Financial Analyst

This $2.2 million registered direct offering represents a significant dilutive event for AMPG shareholders, with the company issuing 1,352,500 new shares at $1.60 per share - a notable discount to recent trading prices. For a micro-cap company with a market cap of about $26 million, this offering represents substantial dilution of approximately 8.5% to existing shareholders. While the capital raise provides needed working capital, the pricing suggests challenging market conditions and financing options. The involvement of Maxim Group as placement agent indicates institutional interest, but the discounted pricing reflects current market skepticism. The company's focus on signal processing components for emerging technologies like 5G/6G networks could provide growth opportunities, but near-term share price pressure is likely due to the dilutive nature of this financing.

HAUPPAUGE, N.Y., Dec. 11, 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 that it has entered into one or more securities purchase agreements with certain institutional investors to purchase 1,352,500 shares of common stock (the “Securities”) at an offering price of $1.60 per share, in a registered direct offering.

The gross proceeds to the Company from the registered direct offering are estimated to be approximately $2.2 million before deducting the placement agent’s fees and other estimated offering expenses. The offering is expected to close on or about December 13, 2024, subject to the satisfaction of customary closing conditions.

Maxim Group LLC is acting as the sole placement agent in connection with the offering.

The Securities are being 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 will be 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 will be filed by the Company with the SEC. When available, 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 completion of the offering and the expected net proceeds of the offering, as well the Company, its business plan and strategy, and its industry. 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 regarding the Company’s ability to satisfy closing conditions related to the offering, 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

What is the size and price of AMPG's December 2024 registered direct offering?

AmpliTech Group's registered direct offering consists of 1,352,500 shares at $1.60 per share, totaling approximately $2.2 million in gross proceeds.

When is AMPG's registered direct offering expected to close?

The offering is expected to close on or about December 13, 2024, subject to customary closing conditions.

Who is the placement agent for AMPG's December 2024 offering?

Maxim Group is acting as the sole placement agent for the offering.

What is the registration statement number for AMPG's offering?

The securities are being offered pursuant to a shelf registration statement on Form S-3 (File No. 333-278657), which was declared effective on April 24, 2024.