Guerrilla RF, Inc. (OTCQX: GUER), a leading provider of cutting-edge RF and microwave semiconductors, has successfully concluded a private placement equity financing initiative. The Company has sold approximately 2.0 million shares of its common stock alongside warrants enabling the purchase of up to an additional 2.0 million shares of common stock. The offering price per share, accompanied by a warrant, in this private placement for accredited investors was set at $2.50. The warrants possess an exercise price of $2.50 per share and a term extending over five years. The private placement generated aggregate net proceeds of roughly $2.9 million for the Company, post the deduction of transaction fees and expenses, and a $1.5 million reduction in outstanding debt consequent to debt conversion into equity.
Simultaneous with this capital infusion, the Company’s primary lender has granted an extension to the maturity of its $12.0 debt facility, stretching it from April 2024 to January 2026. This extension empowers the Company to steadfastly pursue its strategic objectives.
Ryan Pratt, the Founder and Chief Executive Officer of Guerrilla RF, remarked, “We anticipate that the capital secured from this raise will propel the Company towards EBITDA break-even, bolster our working capital requirements, and underpin our R&D endeavors, as we expedite our growth through fresh market ventures and leverage our robust competitive positioning.”
The Benchmark Company, LLC played the role of the exclusive placement agent for this offering. The Kestrel Merchant Partners group within The Benchmark Company, LLC spearheaded the origination and execution of the offering. Legal counsel for the Company was provided by Brooks, Pierce, McLendon, Humphrey & Leonard, LLP, while Faegre, Drinker, Biddle & Reath, LLP served as legal counsel for The Benchmark Company, LLC.
It’s important to note that the securities involved were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D. Neither the shares of common stock nor the warrants, nor the underlying shares of common stock, have been registered under the Act or applicable state securities laws. Consequently, these securities may not be offered or sold in the United States except in compliance with an effective registration statement or an applicable exemption from the registration requirements of the Act and relevant state securities laws.
This press release serves solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy any of the securities mentioned herein. Additionally, there shall be no sale of these securities in any state or jurisdiction where such offer, solicitation, or sale would contravene the laws of such state or jurisdiction.
