Ostin Technology Group Co., Ltd. Announces $5 Million Registered Direct Offering
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.
Ostin Technology Group (NASDAQ:OST), un fornitore cinese di moduli display e polarizzatori, ha annunciato un offerta diretta registrata da 5 milioni di dollari attraverso la vendita di 41.666.667 azioni ordinarie di Classe A al prezzo di 0,12 dollari per azione a un singolo investitore istituzionale.
L'offerta include warrant prefinanziati con un prezzo di esercizio di 0,001 dollari per azione. L'operazione, gestita da Univest Securities, LLC come unico agente di collocamento, è prevista in chiusura intorno al 1 luglio 2025. L'offerta viene condotta nell'ambito di una dichiarazione di registrazione a scaffale precedentemente depositata e dichiarata efficace dalla SEC.
Ostin Technology Group (NASDAQ:OST), un proveedor chino de módulos de pantalla y polarizadores, ha anunciado una oferta directa registrada de 5 millones de dólares mediante la venta de 41,666,667 acciones ordinarias Clase A a 0.12 dólares por acción a un único inversor institucional.
La oferta incluye warrants prefinanciados con un precio de ejercicio de 0.001 dólares por acción. La transacción, gestionada por Univest Securities, LLC como único agente colocador, se espera que cierre alrededor del 1 de julio de 2025. La oferta se realiza bajo una declaración de registro en estante previamente presentada y declarada efectiva por la SEC.
Ostin Technology Group (NASDAQ:OST)는 디스플레이 모듈 및 편광판을 공급하는 중국 기업으로, 단일 기관 투자자에게 주당 0.12달러에 41,666,667주 클래스 A 보통주를 판매하는 500만 달러 규모의 등록 직접 공모를 발표했습니다.
이번 공모에는 주당 행사가 0.001달러인 선지급 워런트가 포함되어 있습니다. 거래는 단독 배정 대리인인 Univest Securities, LLC가 관리하며, 2025년 7월 1일경 마감될 예정입니다. 이 공모는 이전에 SEC에 제출되어 효력이 인정된 선반 등록 명세서에 따라 진행됩니다.
Ostin Technology Group (NASDAQ:OST), un fournisseur chinois de modules d'affichage et de polariseurs, a annoncé une offre directe enregistrée de 5 millions de dollars par la vente de 41 666 667 actions ordinaires de classe A à 0,12 dollar par action à un investisseur institutionnel unique.
L'offre comprend des bons de souscription préfinancés avec un prix d'exercice de 0,001 dollar par action. La transaction, gérée par Univest Securities, LLC en tant qu'agent unique de placement, devrait se clôturer aux alentours du 1er juillet 2025. L'offre est réalisée dans le cadre d'une déclaration d'enregistrement sur étagère précédemment déposée et déclarée effective par la SEC.
Ostin Technology Group (NASDAQ:OST), ein chinesischer Anbieter von Displaymodulen und Polarisatoren, hat eine registrierte Direktplatzierung über 5 Millionen US-Dollar angekündigt, bei der 41.666.667 Class A Stammaktien zu 0,12 US-Dollar pro Aktie an einen einzelnen institutionellen Investor verkauft werden.
Das Angebot umfasst vorfinanzierte Warrants mit einem Ausübungspreis von 0,001 US-Dollar pro Aktie. Die Transaktion, die von Univest Securities, LLC als alleinigem Platzierungsagenten betreut wird, soll voraussichtlich um den 1. Juli 2025 abgeschlossen werden. Das Angebot erfolgt im Rahmen einer zuvor bei der SEC eingereichten und für wirksam erklärten Shelf-Registrierung.
- Secured $5 million in gross proceeds through registered direct offering
- Transaction with institutional investor indicates professional investment interest
- Significant dilution potential with 41,666,667 new shares being offered
- Low share price of $0.12 indicates potential market concerns
Insights
Ostin's $5M offering at $0.12/share represents significant dilution, raising capital at a substantial discount amid likely financial pressures.
This $5 million registered direct offering reveals significant challenges for Ostin Technology. The company is selling 41,666,667 Class A ordinary shares at just $0.12 per share, which likely represents a substantial discount to recent trading prices and suggests urgent capital needs.
The pricing indicates concerning financial pressure - companies typically only accept such terms when they have limited alternatives. This offering structure, including pre-funded warrants (essentially deferred shares with a nominal $0.001 exercise price), is commonly used when investors want immediate equity exposure while bypassing ownership threshold reporting requirements.
The single institutional investor structure, rather than a broader market offering, further suggests limited investor interest. Univest Securities serving as the sole placement agent indicates a narrowly marketed transaction.
The offering's dilutive impact appears substantial given the share count and price. This capital raise will significantly increase the outstanding share count, potentially causing meaningful ownership dilution for existing shareholders. While the fresh capital provides operational runway, the terms reflect weak negotiating position.
The shelf registration statement from May 2024 shows the company had anticipated needing additional funding. Investors should closely examine the company's cash position and burn rate when the final prospectus is filed to understand exactly why this capital was needed and how long it might sustain operations.
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
The aggregate gross proceeds to the Company of this offering are expected to be approximately
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?
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