CHARLOTTE, N.C. - Akoustis Technologies, Inc. (NASDAQ:AKTS), a manufacturer of high-band RF filters, has announced a registered direct offering of 50 million shares at $0.20 each, aiming to raise approximately $10 million. The transaction is set to close around May 24, 2024, subject to customary closing conditions. Roth Capital Partners is serving as the sole placement agent for the offering.
The company plans to allocate the net proceeds from this offering as working capital and to fund its operations. This move comes as part of Akoustis's strategy to capitalize on the growing demand for advanced RF filters needed in mobile and other wireless applications.
Akoustis's technology focuses on high-performance bulk acoustic wave (BAW) RF filters, which are crucial for wireless communication devices. The company's proprietary XBAW® manufacturing process is designed to deliver filters that can handle higher bandwidth, higher operating frequencies, and higher output power compared to traditional BAW technologies.
The offering is being made pursuant to an effective shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission (SEC). A prospectus supplement related to the offering will be filed with the SEC and will be available on its website.
This announcement comes amid Akoustis's efforts to strengthen its position in the RF filter market, which is witnessing rapid growth due to the proliferation of mobile devices and the expansion of wireless communication networks.
Investors can obtain copies of the final prospectus supplement and accompanying prospectus, once available, from the SEC's website or by contacting Roth Capital Partners.
InvestingPro Insights
In light of Akoustis Technologies' recent announcement of its direct offering, the latest metrics from InvestingPro provide a clearer picture of the company's financial status. Akoustis Technologies currently has a market capitalization of $27.86 million, which is relatively small, indicating a higher risk and potential for volatility. The company's revenue for the last twelve months as of Q3 2024 stands at $29.86 million, demonstrating a substantial growth rate of 24.47%. This growth is a positive signal for investors, reflecting the company's ability to increase sales in the competitive RF filter market. However, it's important to note that the company's Price / Book multiple is at a low of 0.32, which might suggest the stock is undervalued or that there are concerns about the company's assets.
Two InvestingPro Tips that stand out for Akoustis Technologies are the significant debt burden the company operates with and the indication that the stock is in oversold territory, as suggested by the Relative Strength Index (RSI). These insights suggest that while there may be potential for a rebound in stock price, investors should be cautious of the company's ability to manage its debt and remain solvent. Additionally, the company does not pay dividends, which may be a consideration for income-focused investors.
For those interested in a deeper dive into Akoustis Technologies' financial health and stock performance, InvestingPro offers additional tips on the company. There are currently 17 more InvestingPro Tips available, which can provide investors with a comprehensive understanding of the risks and opportunities associated with this stock. To access these insights, visit https://www.investing.com/pro/AKTS and remember to use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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