Amesite Announces Pricing of Public Offering

Rhea-AI Summary

Amesite (Nasdaq: AMST) has announced the pricing of its 'best efforts' underwritten public offering of 1,201,667 shares of common stock at $3.00 per share, aiming to raise approximately $3.6 million. Company officers and directors are participating with subscriptions of about $1.26 million.

The offering is expected to close on January 8, 2025, with Laidlaw & Company and Craft Capital Management acting as joint book-running managers. The net proceeds will be used for general corporate purposes, capital expenditures, working capital, and general and administrative expenses.

The offering is being made pursuant to a shelf registration statement on Form S-3 that was declared effective by the SEC on December 18, 2024.

Positive

• Officers and directors showing confidence by participating with $1.26M investment
• Successfully secured $3.6M in funding through public offering

Negative

• Dilution of existing shareholders through new share issuance
• Offering price of $3.00 per share indicates need for capital raising

Insights

Financial Analyst

The $3.6 million public offering represents a significant capital raise for Amesite, priced at $3.00 per share. The notable aspect is the substantial insider participation, with officers and directors committing $1.26 million, approximately 35% of the total offering. This insider buying demonstrates management's confidence but also indicates potential difficulties in attracting external investors.

For a micro-cap company with a market cap of just $12.9 million, this offering represents substantial dilution of approximately 27.8% (1.2M new shares). The pricing at $3.00 likely reflects current market conditions and investor sentiment toward small-cap AI companies. The dual bookrunner structure with Laidlaw and Craft Capital suggests a coordinated effort to ensure successful placement, though the "best efforts" nature of the underwriting indicates some uncertainty about demand.

The unspecified use of proceeds for "general corporate purposes" provides visibility into strategic deployment of capital, which could concern investors. The timing, coming just weeks after the shelf registration effectiveness, suggests urgent capital needs. This financing, while providing needed working capital, comes at a significant cost to existing shareholders through dilution.

DETROIT, Jan. 07, 2025 (GLOBE NEWSWIRE) -- Amesite Inc. (Nasdaq: AMST), a pioneering technology company specializing in the development and marketing of B2C and B2B AI-driven solutions, today announced the pricing of its “best efforts” underwritten public offering of 1,201,667 shares of its common stock at a public offering price of $3.00 per share, before underwriting discounts and commissions, for an aggregate offering of approximately $3.6 million. Certain officers and directors of the Company are participating in the offering for aggregate subscriptions of approximately $1.26 million. The offering is expected to close on January 8, 2025, subject to the satisfaction of customary closing conditions.

Laidlaw & Company (UK) Ltd. and Craft Capital Management LLC are acting as joint book-running managers for the offering.

The Company intends to use the net proceeds from the offering for general corporate purposes, capital expenditures, working capital and general and administrative expenses.

A shelf registration statement on Form S-3 (Registration No. 333-282999) relating to the public offering of the securities described above was previously filed with the Securities and Exchange Commission (SEC) and declared effective on December 18, 2024. A preliminary prospectus supplement and accompanying prospectus relating to the underwritten public offering was filed with the SEC and are available on the SEC’s website at www.sec.gov. Copies of the preliminary prospectus supplement and accompanying prospectus relating to the offering may be obtained from Laidlaw & Company (UK) Ltd., 521 Fifth Ave., 12^th Floor, New York, NY 10175, Attention: Syndicate Dept.; email: syndicate@laidlawltd.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other 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 other jurisdiction. Any offer, if at all, will be made only by means of the prospectus supplement and accompanying prospectus forming a part of the effective registration statement.

About Amesite Inc.

Amesite Inc. (Nasdaq: AMST) is a pioneering technology company specializing in the development and marketing of B2C and B2B AI-driven solutions. Leveraging its proprietary AI infrastructure, Amesite offers cutting-edge applications that cater to both individual and professional needs. NurseMagic™, the company’s mobile app for health and care professionals, streamlines creation of nursing notes and documentation tasks, enhances patient communication, and offers personalized guidance to nurses on patient care, medications, and handling challenging workplace situations.

Forward Looking Statements

This communication contains forward-looking statements (including within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended) concerning the Company, the Company’s anticipated public offering, the Company's planned online machine learning platform, the Company's business plans, any future commercialization of the Company's online learning solutions, potential customers, business objectives and other matters. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as "may," "will," "should," "would," "expect," "plan," "believe," "intend," "look forward," and other similar expressions among others. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement. Risks facing the Company and its planned platform are set forth in the Company's filings with the SEC. Except as required by applicable law, the Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations Contact
MJ Clyburn
TraDigital IR
clyburn@tradigitalir.com

FAQ

How much money is Amesite (AMST) raising in its January 2025 public offering?

Amesite is raising approximately $3.6 million through the offering of 1,201,667 shares at $3.00 per share.

What is the participation of Amesite's officers and directors in the January 2025 offering?

Officers and directors of Amesite are participating in the offering with aggregate subscriptions of approximately $1.26 million.

When will Amesite's January 2025 public offering close?

The offering is expected to close on January 8, 2025, subject to customary closing conditions.

How will Amesite (AMST) use the proceeds from its January 2025 offering?

Amesite intends to use the net proceeds for general corporate purposes, capital expenditures, working capital, and general and administrative expenses.

Who are the underwriters for Amesite's January 2025 public offering?

Laidlaw & Company (UK) and Craft Capital Management are acting as joint book-running managers for the offering.