GARDNER, Mass. - Precision Optics Corporation, Inc. (NASDAQ:POCI), a specialist in advanced optical instruments for medical and defense industries, disclosed on Wednesday that it has arranged a registered direct offering with select institutional and accredited investors, as well as certain company directors and officers. The agreement involves the sale of 265,868 shares of common stock, aiming to raise approximately $1.4 million in gross proceeds before expenses.
The company set the purchase price at $5.25 per share for institutional and accredited investors, while directors and officers will acquire shares at $5.79 each. This transaction is scheduled to close on August 15, 2024, contingent upon customary closing conditions.
A.G.P./Alliance Global Partners (NYSE:GLP) is serving as the exclusive placement agent for this offering. The offering is made possible by an effective shelf registration statement that was previously filed with the U.S. Securities and Exchange Commission (SEC) and declared effective on June 14, 2024.
Precision Optics has a history dating back to 1982 and has established itself as a leader in micro-optics and 3D imaging technology. The company supports the healthcare sector by providing advanced imaging systems for minimally invasive surgery and has long-standing relationships with top-tier medical device companies. In the defense and aerospace sectors, it leverages its micro-optics expertise to meet stringent quality standards.
The press release includes forward-looking statements regarding the expected closing of the offering, and while the company anticipates successful completion, it acknowledges that various risks and uncertainties may affect the outcome.
The company's announcement is based on a press release statement and aims to provide investors with the latest financial developments related to Precision Optics Corporation.
In other recent news, Precision Optics Corporation has reported near-record revenue of $5.24 million in its Q3 FY2024 earnings call. This financial growth was driven by new and follow-on production orders, as well as an increase in engineering work.
A significant event of the quarter was a record-setting $9 million order for a single-use endoscope assembly, which is projected to substantially contribute to revenues in fiscal years 2025 and 2026. Moreover, Precision Optics secured two major follow-on orders from the aerospace and defense market.
Another recent development for Precision Optics is the executive transition of its Senior Vice President of Sales and Marketing, Jeffrey L. DiRubio. DiRubio, who has played a crucial role in the company's sales and marketing efforts, will continue to provide his expertise through a one-year consulting agreement. This agreement will compensate DiRubio with a total sum of $110,000, paid in monthly installments over the term.
These developments are part of Precision Optics' strategic initiatives as it continues to secure substantial orders and drive future growth. The company anticipates continued revenue growth and profitability through fiscal 2025 and beyond, with expectations for fourth-quarter revenues to be similar or higher than the third quarter.
InvestingPro Insights
Precision Optics Corporation, Inc. (POCI) has been navigating the market with a set of financial metrics that could influence investor perspectives. According to the latest data available on InvestingPro, the company's market capitalization stands at a modest $35.44 million. This valuation reflects the market's current assessment of the company's worth, which is significant for investors considering the direct offering price set by the company.
InvestingPro Tips reveal that Precision Optics operates with a moderate level of debt, which could be seen as a positive indicator of the company's financial health, especially when considering its involvement in capital-intensive industries such as medical and defense.
However, it is also noted that the company has not been profitable over the last twelve months, which is an important consideration for investors looking at long-term value creation. Additionally, the company does not pay a dividend to shareholders, which might influence the investment decisions of those seeking regular income from their investments.
Key metrics from InvestingPro Data that stand out include:
- P/E Ratio (Adjusted) LTM as of Q3 2024: -16.93, indicating that investors are willing to pay $16.93 for every dollar of loss the company earns, which may suggest growth expectations or a willingness to endure short-term losses for potential future gains.
- Revenue Growth (Quarterly) for Q3 2024: 3.85%, showing a quarterly uptick in revenue that could signal a positive trend in the company’s sales performance.
- Gross Profit Margin LTM as of Q3 2024: 33.65%, which highlights the company's efficiency in generating profit from its sales after accounting for the cost of goods sold.
These metrics, especially the recent quarterly revenue growth and gross profit margin, could be of interest to potential investors assessing the company's recent performance and its ability to generate future profits.
For those seeking a deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/POCI, which can provide further insights into Precision Optics Corporation's financial health and market position.
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