Astrotech raises approximately $3M in private placement
Astrotech 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 $3M, 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 expects that the addition of these proceeds to its balance sheet will enable the company to fund its operating expenses and capital expenditure requirements into 2019. The company's Chairman of the Board and CEO, Thomas B. Pickens III, has purchased, for an aggregate purchase price of approximately $2.037M, 866,950 shares of the company's Series B convertible preferred stock at an exercise price of $2.35, the closing price of the company's common stock on the NASDAQ Capital Market on October 8, 2018. The preferred stock will be convertible into an aggregate of 866,950 shares of the company's common stock upon receipt of shareholder approval in accordance with NASDAQ Listing Rule 5635(b). In addition, a current Astrotech shareholder has purchased, for an aggregate purchase price of approximately $963,000, 409,645 shares of the company's common stock at a price of $2.35 per share.