Orbital Energy Group, Inc. Announces Closing of $21.0 Million Registered Direct Offering

Rhea-AI Summary

Orbital Energy Group closed a registered direct offering raising approximately $21.0 million by selling 16,153,847 shares at $1.30 per share alongside warrants for the same amount at $1.31 exercise price. The offering, led by A.G.P./Alliance Global Partners, follows an effective shelf registration statement with the SEC. The warrants have a five-year term and are exercisable post six months from issuance. This funding aims to strengthen the Company's position in the electric power, telecommunications, and renewable services.

Positive

• Raised approximately $21.0 million from the registered direct offering.
• The offering was well-structured with warrants, offering potential for additional capital.
• The funds will likely bolster growth in core infrastructure services.

Negative

• Issuing a large number of shares may lead to shareholder dilution.
• Market reaction to equity offerings can negatively impact stock price.

HOUSTON, May 3, 2022 /PRNewswire/ -- Orbital Energy Group, Inc. (Nasdaq: OEG) ("Orbital Energy" or the "Company") today announced that it has closed its previously announced registered direct offering with a single institutional investor, to purchase 16,153,847 shares of the Company's common stock (or common stock equivalents) at an effective purchase price of $1.30 per share and warrants to purchase 16,153,847 shares of its common stock at an exercise price of $1.31 per share for gross proceeds of approximately $21.0 million. The warrants have a five-year term and are exercisable six months following the date of issuance.

A.G.P./Alliance Global Partners acted as sole placement agent for the offering.

This offering is being made 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") under the Securities Act of 1933, as amended, which was declared effective by the SEC on April 29, 2021. A final prospectus supplement describing the terms of the proposed offering has been filed with the SEC and is available on the SEC's website located at http://www.sec.gov. Electronic copies of the prospectus supplement may be obtained, when available, 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 Energy Group

Orbital Energy Group, Inc. (Nasdaq: OEG) is a diversified infrastructure services platform, providing engineering, design, construction, and maintenance services to customers in the electric power, telecommunications, and renewable industries.

Orbital Energy Group is dedicated to maximizing shareholder value, by striving to exceed our customers' expectations, building a diverse workforce and making a positive difference in the lives of our employees and the communities in which we operate, and contributing to reducing the carbon footprint through the services we provide.

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 timing and completion of the proposed offering and other statement that are predictive in nature. 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, 2021. 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 Contact
Three Part Advisors
John Beisler or Steven Hooser
817-310-8776
investors@orbitalenergygroup.com

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SOURCE Orbital Energy Group, Inc.

FAQ

What amount did Orbital Energy Group raise in its recent offering?

Orbital Energy Group raised approximately $21.0 million through a registered direct offering.

How many shares did Orbital Energy Group sell in its offering?

The company sold 16,153,847 shares of common stock in its recent offering.

What is the exercise price of the warrants issued by Orbital Energy Group?

The exercise price of the warrants is $1.31 per share.

Who acted as the placement agent for this offering?

A.G.P./Alliance Global Partners acted as the sole placement agent for the offering.

When was the effective shelf registration statement filed for this offering?

The effective shelf registration statement was filed on April 29, 2021.