Alpine 4 Technologies Ltd. (OTCQB:ALPP) said it has entered into definitive agreements for a registered direct offering for gross proceeds of approximately $50 million before deducting placement agent fees and expenses.
It added that institutional investors will purchase and sale of 8,333,333 shares of its Class A common stock at a purchase price of $6.00 per share.
The company, a leading operator and owner of small market businesses, said it intends to use the net proceeds from the offering to further accelerate its business plan, repay some of its outstanding debts, and fund any additional working capital needs.
READ: Alpine 4 Holdings says subsidiary Morris Sheet Metal awarded new building projects
The offering is expected to close on or about February 17, 2021, subject to the satisfaction of customary closing conditions. A.G.P./Alliance Global Partners is acting as sole placement agent for the offering.
The shares of Class A common stock being sold via the offering are being sold under a shelf registration statement on Form S-3 (File No. 333-252539), previously filed with the Securities and Exchange Commission and declared effective on February 10, 2021.
On Thursday, Alpine 4 Holdings said its subsidiary, Morris Sheet Metal (MSM) has been awarded US$2.9mln in new building projects with its healthcare and newly acquired product distribution clientele in January.
The small market business operator said the January bookings were “record setting” and would typically be generated over the course of a quarter.
Alpine 4 Technologies is a conglomerate that is acquiring businesses that fit into its disruptive DSF business model of Drivers, Stabilizers, and Facilitators. Its focus is on how the adaptation of new technologies even in brick and mortar businesses can drive innovation. This unique perspective has culminated in the development of the company's Blockchain-enabled Enterprise Business Operating System called SPECTRUMebos.
Contact the author at jon.hopkins@proactiveinvestors.com