Applied Energetics raises $10.8 million in private placement

TUCSON - Applied Energetics, Inc. (OTCQB:AERG), a technology company with a market capitalization of $456 million, has closed a private placement of approximately 6 million shares of common stock and pre-funded warrants, raising $10.8 million from existing accredited investors, according to a press release statement. The company’s stock has shown remarkable momentum, gaining 225% year-to-date according to InvestingPro data.

The transaction, which closed on Wednesday, was priced at $1.80 per share or $1.799 per pre-funded warrant. The pre-funded warrants can be exercised immediately at $0.001 per share but include restrictions preventing holders from acquiring 5% or more of the company’s common stock.

Applied Energetics, which specializes in ultrashort pulse laser technology and directed energy solutions, plans to use the proceeds for product development, employee recruitment and retention, potential strategic partnerships, preparation for a possible uplisting to a national market, and general corporate purposes.

Titan Partners Group, a division of American Capital Partners, served as financial advisor for the private placement.

The company holds 26 patents and has 6 patents pending for its proprietary laser architecture, which it claims enables significant size-weight-power reductions compared to traditional continuous wave laser technology. Applied Energetics’ systems are designed for integration on defense platforms, with applications in both national security and commercial markets.

In other recent news, Applied Energetics has made several noteworthy announcements. The company demonstrated its Pulsed Laser Air Defense (PLAID) system by successfully neutralizing cameras on four drones in just four seconds during a recent test. This marks the first multi-drone "camera kills" in their development program. Additionally, Applied Energetics has appointed Dr. David E. Spence as Chief Product Officer, bringing over 25 years of experience in laser technology development to the team. The company has also formed an Audit Committee and a Compensation Committee within its Board of Directors, aligning its corporate governance with the Securities Exchange Act requirements. Furthermore, Brigadier General (Retired) Samuel "Luke" Peterson has joined the company’s Advisory Board, contributing his extensive military service experience. These developments highlight Applied Energetics’ ongoing efforts to enhance its leadership and governance structures while advancing its technological capabilities.

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