AmpliTech Group Announces Pricing of $3.1 Million Registered Direct Offering

Rhea-AI Summary

AmpliTech Group (NASDAQ: AMPG), a designer and manufacturer of signal processing components for satellite and 5G/6G communications networks, has announced a $3.1 million registered direct offering. The company will sell 1,516,680 shares of common stock at $2.10 per share to institutional investors. The offering, expected to close around December 18, 2024, is being conducted through Maxim Group as the sole placement agent. The securities are being offered under a shelf registration statement that was declared effective by the SEC on April 24, 2024.

Positive

• Secured $3.1 million in additional funding through registered direct offering
• Institutional investors participation indicates market confidence

Negative

• Share dilution through issuance of 1,516,680 new shares
• Offering price of $2.10 may represent a discount to market price

Insights

Financial Analyst

This $3.1 million registered direct offering represents a significant capital raise for AmpliTech Group, though at a price of $2.10 per share, it comes at a notable discount to recent trading levels. The dilutive impact will be substantial with 1,516,680 new shares being issued, increasing the float considerably given AMPG's small market cap. While the fresh capital could support the company's operations and development initiatives in 5G/6G systems, the pricing and size of the offering may put near-term pressure on the stock. The involvement of Maxim Group as placement agent adds credibility to the transaction, but institutional investors receiving newly issued shares at a discount could create selling pressure once trading restrictions lift. The timing and terms suggest some urgency in raising capital, which warrants careful consideration of the company's cash position and burn rate.

HAUPPAUGE, N.Y., Dec. 17, 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 1,516,680 shares of common stock (the “Securities”) at an offering price of $2.10 per share, in a registered direct offering.

The gross proceeds to the Company from the registered direct offering are estimated to be approximately $3.1 million before deducting the placement agent’s fees and other estimated offering expenses. The offering is expected to close on or about December 18, 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

How much capital is AMPG raising in its December 2024 offering?

AmpliTech Group is raising approximately $3.1 million in gross proceeds through a registered direct offering of common stock.

What is the share price for AMPG's December 2024 registered direct offering?

The offering price is $2.10 per share of common stock.

How many new shares is AMPG issuing in the December 2024 offering?

AmpliTech Group is issuing 1,516,680 shares of common stock in the registered direct offering.

When is AMPG's December 2024 registered direct offering expected to close?

The offering is expected to close on or about December 18, 2024, subject to customary closing conditions.

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

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