Orbital Energy Group, Inc. Announces Closing Of $38 Million Registered Direct Offering
Rhea-AI Summary
On July 26, 2021, Orbital Energy Group, Inc. (Nasdaq: OEG) announced the closing of a registered direct offering, selling 10,410,959 shares at $3.65 each, generating gross proceeds of $38 million. The funds will enhance growth in their telecommunications subsidiary, Gibson Technical Services, and support upcoming large solar projects through Orbital Solar Services. A.G.P./Alliance Global Partners acted as the sole placement agent. The offering utilized an effective shelf registration statement previously filed with the SEC.
Positive
- Generated $38 million in gross proceeds for business growth.
- Funds will be allocated to expand telecommunications and solar services, potentially boosting revenues.
Negative
- Shareholder dilution from the offering of 10,410,959 shares.
News Market Reaction – OEG
In the trading session that priced this news, OEG declined 1.64%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
HOUSTON, July 26, 2021 /PRNewswire/ -- Orbital Energy Group, Inc. (Nasdaq: OEG) ("Orbital" or the "Company"), today announced the closing of its previously announced registered direct offering. The Company sold 10,410,959 shares of its common stock at a price of
A.G.P./Alliance Global Partners acted as sole placement agent for the offering.
Orbital's CEO and vice-chairman, Jim O'Neil, commented, "This cash infusion will be used to enhance the growth and development of our new telecommunications subsidiary, Gibson Technical Services, along with Orbital Power Services and our new foundation division, Eclipse, and to fund mobilization costs associated with upcoming large solar projects at Orbital Solar Services. All-in-all, this financing is a very positive development for our Company, our customers, our employees, and our shareholders."
The securities were offered pursuant to an effective shelf registration statement on Form S-3 (File No. 333-252682) previously filed with the U.S. Securities and Exchange Commission (the "SEC"). A prospectus supplement and accompanying prospectus relating to the offering have been filed with the SEC and are available for free on the SEC's website at www.sec.gov. Electronic copies of the final prospectus supplement and the accompanying prospectus relating to the offering may be obtained from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060, or by email at prospectus@allianceg.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Orbital
Orbital Energy Group, Inc. (Nasdaq: OEG) is creating a diversified energy services platform through the acquisition and development of innovative companies. Orbital Energy's group of businesses includes Orbital Power Services, Orbital Solar Services, Orbital Telecom Services and Orbital Gas Systems.
Orbital Power Services provides engineering, construction, maintenance and emergency response solutions to the power, utilities, and midstream markets.
Orbital Solar Services provides engineering, procurement, and construction ("EPC") expertise in the renewable energy industry and established relationships with solar developers and panel manufacturers in the utility scale solar market.
Orbital Telecom Services, operating as Gibson Technical Services, has nationwide locations equipped to effectively support multi-vendor OEM technology environments and outside plant construction operations on an as-needed basis with specialized services in broadband, wireless, outside plant and building technologies, including healthcare. Orbital Gas Systems is a 30-year leader in innovative gas solutions, serving the energy, power and processing markets through the design, installation and commissioning of industrial gas sampling, measurement, and delivery systems.
As a publicly traded company, Orbital Energy is dedicated to maximizing shareholder value. But most important, our commitment to conduct business with a high level of integrity, respect, and philanthropic dedication allows the organization to make a difference in the lives of their customers, employees, investors, and global community.
For more information please visit: www.orbitalenergygroup.com
Forward Looking Statements
This press release contains certain 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 and Private Securities Litigation Reform Act, as amended, including those relating to the expected use of proceeds. These statements may be identified by the use of forward-looking expressions, including, but not limited to, "expect," "anticipate," "intend," "plan," "believe," "estimate," "potential," "predict," "project," "should," "would" and similar expressions and the negatives of those terms. These statements relate to future events and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any results, performance or achievements expressed or implied by the forward-looking statements. Such factors include the risk factors set forth in the Company's filings with the SEC, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2020, its periodic reports on Form 10-Q, and its Current Reports on Form 8-K filed in 2020 and 2021, as well as the risks identified in the shelf registration statement and the prospectus supplement relating to the offering. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this press release. Orbital undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
Investor Relations
KCSA Strategic Communications
David Hanover
T: 212-896-1220
orbital@kcsa.com
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SOURCE Orbital Energy Group, Inc.