Ostin Technology Group Co., Ltd. Secures $5.0 Million In Registered Direct Offering

$OST

Ostin Technology Group Co., Ltd. (Nasdaq:OST), a prominent player in the display module and polarizer industry, headquartered in Nanjing, China, has successfully closed a significant financial transaction. On April 15, the company announced the completion of a registered direct offering, securing $5.0 million in aggregate gross proceeds. This strategic financial move involves the sale of 9,090,908 Class A ordinary shares, each paired with two warrants, at a combined offering price of $0.55 per share and associated warrants.

The warrants, integral to this offering, are set at an exercise price of $0.8 per Class A ordinary share. These are immediately exercisable post-issuance and hold a validity of two years. Additionally, an innovative alternative exercise option is available one month post-issuance, allowing holders to exercise the warrants for 0.9 times the number of shares typically receivable upon standard execution.

This financial influx, derived before deducting other offering-related expenses, is part of a broader strategy facilitated under a shelf registration statement on Form F-3, which the US Securities and Exchange Commission (SEC) declared effective on May 28, 2024. The specifics of this transaction are detailed in a prospectus supplement filed as part of the registration statement.

Ostin Technology Group, established in 2010, has carved a niche in the technology sector by specializing in the design, development and manufacturing of TFT-LCD display modules and polarizers. This move is anticipated to support the company’s ongoing projects and future technological innovations, reinforcing its standing in the display module and polarizer market. The company continues to navigate the complexities of the technology sector, this financial boost could play a crucial role in sustaining its growth and adaptation to market demands.

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