DJ AmpliTech Group Shares Drop 63% After Public Offering, Reverse Split

· 2021-02-17 10:30

By Chris Wack

AmpliTech Group Inc. shares were down 63% to $6.73 after the company priced its underwritten public offering of 1.4 million units at $7 per unit.

Each unit issued in the offering consists of one share of common stock and one warrant to purchase one share of common stock at an exercise price of $7. The common stock and warrants are immediately separable and will be issued separately.

The common stock and warrants began trading on the Nasdaq Capital Market on Wednesday.

AmpliTech expects to receive proceeds of $9.6 million.

Concurrent with the offering, the company put into effect a reverse split of its issued and outstanding common stock at a ratio of 1-for-20.

AmpliTech has granted the underwriters a 45-day option to purchase up to an additional 205,700 shares of common stock and/or warrants at the public offering price to cover over-allotments, if any.

The offering is expected to close Feb. 19.

The stock hit its 52-week high of $19.80 on Tuesday, and closed the day up 42%.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

February 17, 2021 10:30 ET (15:30 GMT)