AmpliTech Group Announces Registered Direct Offering

AmpliTech Group, Inc. (NASDAQ: AMPG) recently disclosed its entrance into a Securities Purchase Agreement on December 16, 2024, with two institutional investors for the sale of 1,516,680 shares of common stock. The registered direct offering, set at a price of $2.10 per share, is anticipated to raise gross proceeds of approximately $3,185,028 for the company.

According to the terms of the Purchase Agreement, AmpliTech agreed to refrain from issuing any additional shares of common stock or securities convertible into or exchangeable for shares or filing any prospectuses for 45 days post the closing of the offering on December 18, 2024. The company also committed not to engage in any stock issuance involving a Variable Rate Transaction for the same duration, with specific exemptions.

To accommodate the above offering, investors who had previously agreed to a 45-day prohibition on the company’s securities issuance opted to waive this restriction. The offering was executed under a shelf registration statement on Form S-3, initially submitted to the Securities and Exchange Commission on April 12, 2024, and later declared effective on April 24, 2024.

Additionally, on the same day, AmpliTech Group finalized a placement agency agreement with Maxim Group LLC, entrusting the Placement Agent with a fee of 7.0% of the total gross proceeds from the shares’ sale, along with covering up to $30,000 in accountable expenses.

The Purchase Agreement, Placement Agency Agreement, and Lock-Up Agreement will be essential components in sustaining these financial moves. These agreements contain representations, warranties, and covenants designed to allocate risks between the involved parties and furnish stakeholders with requisite transaction information.

Under the Lock-Up Agreement, company officials and executives agreed not to trade, directly or indirectly, any common stock or convertible securities for a 45-day post-offering period, barring certain exceptions.

The full terms of the Purchase Agreement, Placement Agency Agreement, and Lock-Up Agreement are accessible as Exhibits 10.1, 10.2, and 10.3, respectively, in the current Form 8-K filing. A legal opinion from Lewis Brisbois Bisgaard Smith LP related to the offering’s legality and the securities’ validity is also included in the filed documents.

AmpliTech Group remains committed to these strategic financial decisions, prioritizing compliance and transparency in its operations.

The company’s stock performance following these announcements will be closely monitored by investors and market analysts to gauge the impact of these financial moves.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read AmpliTech Group’s 8K filing here.

About AmpliTech Group

AmpliTech Group, Inc designs, engineers, and assembles micro-wave component-based amplifiers. The company’s products include radio frequency (RF) amplifiers and related subsystems, such as low noise amplifiers for use in receivers of various communication systems comprising Wi-Fi, radar, satellite, base station, cell phone, radio, etc.; and medium power amplifiers that provide enhanced output power and gain in transceiver chains.