Astrotech’s CEO Makes Investment in the Company
April 17 2019 - 8:45PM
Business Wire
Astrotech Corporation ("Astrotech" or the "Company") (NASDAQ:
ASTC) today announced that it has entered into and closed a private
placement of the sale of its equity securities for aggregate gross
proceeds to the Company of approximately $2 million, before
deducting offering-related expenses. The Company plans to use
the proceeds from the financing primarily for working capital and
general corporate purposes.
The Company’s Chairman of the Board and Chief Executive Officer,
Thomas B. Pickens III, has purchased, for an aggregate purchase
price of approximately $1 million, 280,898 shares of the Company’s
series D convertible preferred stock (the “Series D Preferred
Stock”), at a price of $3.56 per share, the consolidated closing
bid price of the Company’s common stock on the NASDAQ Capital
Market on April 16, 2019. The Series D Preferred Stock is
convertible, at the option of the holder, into an aggregate of
280,898 shares of the Company’s common stock. In addition, a
current significant Astrotech shareholder has purchased, for an
aggregate purchase price of approximately $1 million, 280,898
shares of the Company’s series C convertible preferred stock (the
“Series C Preferred Stock”), at a price of $3.56 per share, the
consolidated closing bid price of the Company’s common stock on the
NASDAQ Capital Market on April 16, 2019. The Series C Preferred
Stock is convertible, at the option of the holder, into an
aggregate of 280,898 shares of the Company’s common stock. The
holder of the Series C Preferred Stock has agreed to restrict its
ability to exercise the Series C Preferred Stock such that the
number of shares of the Company common stock held by such holder
and its affiliates after such conversion does not exceed 9.99% of
the Company’s then issued and outstanding shares of common
stock.
The securities offered in the private placement have not been
registered under the Securities Act of 1933, as amended (the
"Securities Act"), or any state securities laws and may not be
offered or sold in the United States absent registration or an
applicable exemption from registration requirements of the
Securities Act and applicable state laws.
This press release is neither an offer to sell nor a
solicitation of an offer to purchase the securities described
herein.
About Astrotech Corporation
Headquartered in Austin, Texas, Astrotech (NASDAQ: ASTC) is a
science and technology development and commercialization company
that launches, manages, and builds scalable companies based on
innovative technology in order to maximize shareholder value.
This press release contains forward-looking statements that are
made pursuant to the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risks, trends, and uncertainties that
could cause actual results to be materially different from the
forward-looking statement. These factors include, but are not
limited to, whether we can successfully develop our proprietary
technologies and whether the market will accept our products and
services, as well as other risk factors and business considerations
described in the Company’s Securities and Exchange Commission
filings including the annual report on Form 10-K. Any
forward-looking statements in this document should be evaluated in
light of these important risk factors. The Company assumes no
obligation to update these forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20190417006031/en/
Eric StoberChief Financial OfficerAstrotech Corporation(512)
485-9530EStober@astrotechcorp.com
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