Ostin Technology Group secures $5 million in share sale

Published 15/04/2025, 21:38
Ostin Technology Group secures $5 million in share sale

NANJING - Ostin Technology Group Co., Ltd. (NASDAQ:OST), a supplier of display modules and polarizers, has closed a securities purchase agreement with investors, raising approximately $5 million before deducting offering expenses. The agreement involved the sale of over 9 million Class A ordinary shares and warrants for the purchase of up to approximately 91 million Class A ordinary shares. The fundraising comes as InvestingPro data shows the company operating with a concerning debt-to-equity ratio of 6.29 and a market capitalization of just $1.66 million, with revenue declining by 43.6% in the last twelve months.

Each share was sold together with two warrants at a price of $0.55, with the warrants exercisable at $0.8 per share from the date of issuance and expiring two years later. The warrants also feature an alternative exercise option one month post-issuance, allowing holders to exercise at 0.9 times the number of shares compared to a standard exercise.

This financial move by the China-based company took place under a shelf registration statement declared effective by the U.S. Securities and Exchange Commission on May 28, 2024. The specifics of the offering are detailed in a prospectus supplement filed with the SEC, accessible on their website.

Founded in 2010, Ostin Technology specializes in manufacturing TFT-LCD display modules and polarizers, catering to consumer electronics, outdoor displays, and automotive markets.

This press release contains forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ from the company’s expectations. These include market trends, product demand and acceptance, and general economic conditions impacting the industry.

The information reported is based on a press release statement from Ostin Technology Group Co., Ltd.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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