AmpliTech Group Announces Pricing of $5.8 Million Registered Direct Offering

Rhea-AI Summary

AmpliTech Group (AMPG) has announced a registered direct offering of 1,871,000 shares of common stock at $3.10 per share, expecting to raise approximately $5.8 million in gross proceeds. The company, which specializes in signal processing components for satellite and 5G/6G communications networks, plans to close the offering around December 27, 2024.

Maxim Group is serving as the sole placement agent for this offering, which is being conducted under a shelf registration statement previously declared effective by the SEC. The offering will be made through a prospectus supplement to be filed with the SEC.

Positive

• Secured $5.8 million in additional funding
• Offering conducted through established institutional investors

Negative

• Potential dilution of existing shareholders through issuance of 1,871,000 new shares
• Offering price of $3.10 may represent a discount to market price

Insights

Financial Analyst

The $5.8 million registered direct offering at $3.10 per share represents a significant capital raise for AmpliTech Group, particularly given their market cap of $56.8 million. The offering structure, priced at a 10.2% premium to the previous closing price, suggests strong institutional investor confidence. This capital injection strengthens their balance sheet and provides important funding for their 5G/6G technology development initiatives. However, the dilution impact is notable, with 1,871,000 new shares representing approximately 19.8% of shares outstanding. The involvement of Maxim Group as placement agent adds credibility to the transaction, though their fees will reduce the net proceeds. The shelf registration approach provides flexibility for future capital raises, but the timing during the holiday season is unusual and could indicate urgency in securing funding.

Tech Industry Analyst

This funding positions AmpliTech strategically in the rapidly evolving 5G/6G communications infrastructure market. Their focus on signal processing components for satellite and advanced communications networks aligns with critical industry growth vectors. The fresh capital could accelerate their development of complete 5G/6G systems, a high-potential market segment. The company's dual focus on both component manufacturing and IC packaging distribution creates valuable supply chain synergies. The timing coincides with increasing demand for advanced RF solutions in satellite communications and terrestrial 5G networks. While the offering strengthens their competitive position, execution risks remain in the highly technical and competitive communications infrastructure market.

HAUPPAUGE, N.Y., Dec. 26, 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 1,871,000 shares of common stock (the “Securities”) at an offering price of $3.10 per share, in a registered direct offering.

The gross proceeds to the Company from the registered direct offering are estimated to be approximately $5.8 million before deducting the placement agent’s fees and other estimated offering expenses. The offering is expected to close on or about December 27, 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 as 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 $5.8 million in gross proceeds through a registered direct offering.

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

The offering price is $3.10 per share.

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

AmpliTech Group is issuing 1,871,000 shares of common stock.

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

The offering is expected to close on or about December 27, 2024.

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

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