HAUPPAUGE, N.Y. - AmpliTech Group, Inc. (NASDAQ: AMPG, AMPGW), a company specializing in advanced signal processing components for various communication networks, has entered into agreements with institutional investors for a registered direct offering of common stock. The company will sell 1,516,680 shares at $2.10 each, expecting to raise approximately $3.1 million before fees and expenses. The closing of the offering is anticipated on or about December 18, 2024, subject to customary conditions. According to InvestingPro data, the stock has shown remarkable momentum with a 175% return over the past week and trades near $2.73, slightly above its Fair Value. The company's market capitalization stands at $34.66 million.
Maxim Group LLC is serving as the exclusive placement agent for the transaction. This offering is made possible through a shelf registration statement on Form S-3, effective as of April 24, 2024, by the U.S. Securities and Exchange Commission (SEC). Details of the offering will be available via a prospectus supplement filed with the SEC.
AmpliTech Group's business encompasses five divisions, including AmpliTech Inc., Specialty Microwave, Spectrum Semiconductors Materials, AmpliTech Group Microwave Design Center, and AmpliTech Group True G Speed Services. The company is recognized for its design, development, manufacturing, and distribution of radio frequency (RF) microwave components and 5G network solutions. Its market reach includes satellite communications, telecommunications, space exploration, defense, and quantum computing sectors.
This press release contains forward-looking statements regarding the completion and expected net proceeds of the offering. These statements are based on current management expectations and are subject to risks, including the company's ability to meet the offering's closing conditions and market conditions. The company cautions investors not to place undue reliance on these forward-looking statements, which are valid only as of their date. With an EBITDA of -$4.05 million and rapid cash consumption noted by InvestingPro, investors should carefully consider the company's financial position.
The information reported is based on a press release statement from AmpliTech Group, Inc.
In other recent news, AmpliTech Group has made notable progress with a series of significant agreements and financial developments. The company secured a nearly $1 million initial purchase order from a Fortune 1000 company as part of a 5-year Basic Order Agreement. This order involves the delivery of Low-Noise Block Downconverters (LNB) products and engineering services. Additionally, AmpliTech inked a 5-year supplier agreement with Fujitsu for Private 5G Network products, marking a significant advancement in global distribution efforts.
The company also reported a second-quarter revenue of $2.5 million and an adjusted EBITDA loss of $1.5 million. In September, AmpliTech received over $1 million in bookings, indicating a positive trend in its financial health. Maxim Group maintained a buy rating for AmpliTech shares, adjusting its price target to $5.00 and expressing optimism about the company's future revenue opportunities.
AmpliTech's recent activities also include an initial order from the University of Edinburgh for its 5G radio products and a Memorandum of Understanding to establish a Private 5G Network in California. These developments underscore AmpliTech's commitment to technological advancement and financial stability.
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