Ostin Technology Group secures $5 million in registered direct offering

NANJING, China - Ostin Technology Group Co., Ltd. (NASDAQ:OST), a supplier of display modules and polarizers in China, announced Monday it has entered into a definitive agreement with a single institutional investor for a registered direct offering expected to raise approximately $5 million. The offering comes as InvestingPro data shows the company operating with a significant debt burden and negative EBITDA of -$5.81M.

The transaction involves the sale of 41,666,667 Class A ordinary shares at a purchase price of $0.12 per share, with pre-funded warrants available at the same price less the $0.001 exercise price. The offering is expected to close on or about July 1, 2025, subject to customary closing conditions.

Univest Securities, LLC is serving as the sole placement agent for the offering, which is being conducted under a shelf registration statement previously filed with and declared effective by the SEC on May 28, 2024.

Founded in 2010, Ostin Technology Group designs and manufactures TFT-LCD display modules primarily used in consumer electronics, outdoor LCD displays, and automotive applications. The company also produces polarizers used in TFT-LCD display modules.

The company did not specify how it intends to use the proceeds from the offering in its press release statement.

The transaction is subject to final documentation and regulatory approvals.

In other recent news, Ostin Technology Group Co., Ltd. has announced several significant developments. The company recently closed a securities purchase agreement, raising approximately $5 million through the sale of over 9 million Class A ordinary shares and warrants for additional shares. This transaction was conducted under a shelf registration statement with the U.S. Securities and Exchange Commission. Additionally, Ostin Technology held an extraordinary general meeting where shareholders approved two major proposals. The first involved increasing the company’s authorized share capital to $10,000,000, while the second was the adoption of a new memorandum and articles of association.

Both proposals were overwhelmingly supported by shareholders, with a 99.94% approval rate. Ostin Technology also addressed unusual stock price fluctuations, stating there were no undisclosed matters affecting these changes. The company emphasized the importance of relying on official statements and SEC filings for accurate information. These recent developments highlight Ostin Technology’s strategic financial moves and shareholder engagement.

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