Ostin Technology Group Co., Ltd. Announces $5 Million Registered Direct Offering

Rhea-AI Summary

Ostin Technology Group (NASDAQ:OST), a Chinese supplier of display modules and polarizers, has announced a $5 million registered direct offering through the sale of 41,666,667 Class A ordinary shares at $0.12 per share to a single institutional investor.

The offering includes pre-funded warrants with an exercise price of $0.001 per share. The transaction, managed by Univest Securities, LLC as the sole placement agent, is expected to close around July 1, 2025. The offering is being conducted under a shelf registration statement previously filed and declared effective by the SEC.

Positive

• Secured $5 million in gross proceeds through registered direct offering
• Transaction with institutional investor indicates professional investment interest

Negative

• Significant dilution potential with 41,666,667 new shares being offered
• Low share price of $0.12 indicates potential market concerns

Nanjing, China, June 30, 2025 (GLOBE NEWSWIRE) -- Ostin Technology Group Co., Ltd. (“the Company”) (Nasdaq: OST), a leading supplier of display modules and polarizers based in China today announced that it has entered into a definitive agreement with a single institutional investor for the purchase and sale of an aggregate of 41,666,667 of the Company’s Class A ordinary share, par value $0.001 per share (the “Shares”) (or pre-funded warrants in lieu thereof) at a purchase price of $0.12 per share in a registered direct offering. The purchase price for the pre-funded warrants is identical to the purchase price for Shares, less the exercise price of $0.001 per share.

The aggregate gross proceeds to the Company of this offering are expected to be approximately $5 million. The transaction is expected to close on or about July 1, 2025, subject to the satisfaction of customary closing conditions.

Univest Securities, LLC is acting as the sole placement agent.

The registered direct offering is being made pursuant to a shelf registration statement on Form F-3 (File No. 333-279177) previously filed by the Company and declared effective by the U.S. Securities and Exchange Commission (“SEC”) on May 28, 2024. A final prospectus supplement and accompanying prospectus describing the terms of the proposed offering will be filed with the SEC and will be available on the SEC's website located at http://www.sec.gov. Electronic copies of the final prospectus supplement and the accompanying prospectus may be obtained, when available, by contacting Univest Securities, LLC at info@univest.us, or by calling +1 (212) 343-8888.

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 such 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. Copies of the prospectus supplement relating to the registered direct offering, together with the accompanying base prospectus will be filed by the Company and, upon filing, can be obtained at the SEC's website at www.sec.gov.

About Ostin Technology Group Co., Ltd.

Founded in 2010, the Company is a supplier of display modules and polarizers in China. The Company designs, develops, and manufactures TFT-LCD display modules in a wide range of sizes and customized sizes which are mainly used in consumer electronics, outdoor LCD displays, and automotive displays. The Company also manufactures polarizers used in the TFT-LCD display modules.
For more information, please visit http://ostin-technology.com/index.html

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and in its other filings with the U.S. Securities and Exchange Commission.

For more information, please contact:
Ostin Technology Group Co., Ltd.
ir@austinelec.com

FAQ

What is the size and price of Ostin Technology Group's (OST) new share offering?

Ostin Technology Group is offering 41,666,667 Class A ordinary shares at $0.12 per share, totaling approximately $5 million in gross proceeds.

When will OST's registered direct offering close?

The offering is expected to close on or about July 1, 2025, subject to customary closing conditions.

Who is the placement agent for OST's $5 million offering?

Univest Securities, LLC is acting as the sole placement agent for the offering.

What is the exercise price of OST's pre-funded warrants in the offering?

The pre-funded warrants have an exercise price of $0.001 per share, with a purchase price equal to the share price minus the exercise price.

How will OST use the proceeds from the $5 million offering?

The press release does not specify the intended use of proceeds from the $5 million offering.