Optex Systems Holdings (OPXS) Prices $4.75M Public Units Offering

August 23, 2016 9:32 AM EDT

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Optex Systems Holdings, Inc. (OTC: OPXS) announced that it has priced an underwritten public offering of units for gross proceeds of $4.75 million, before deducting the underwriting discount and commissions and estimated offering expenses payable by Optex, but excluding any proceeds from the exercise of any warrants.

The offering is comprised of Class A Units, priced at a public offering price of $1.20 per unit, with each unit consisting of one share of common stock and one five-year warrant to purchase one share of common stock with an exercise price of $1.50 per share (each, a "warrant"), and Class B Units, priced at a public offering price of $5,000 per unit, with each unit comprised of one share of preferred stock with a conversion price of $1.20 which is convertible into 4,167 shares of common stock and warrants to purchase 4,167 shares of common stock. The preferred stock issued in this transaction includes a beneficial ownership blocker but has no dividend rights (except to extent dividends are also paid on the common stock), liquidation preference or other preferences over common stock. The securities comprising the units are immediately separable and will be issued separately.

Optex has granted the underwriters a 45-day option to purchase up to 593,785 additional shares of common stock and/or additional warrants to purchase up to 593,785 shares of common stock solely to cover over-allotments, if any, at the public offering price per share and warrant less the underwriting discounts and commissions. The warrants are expected to begin trading on the OTCQB Marketplace, operated by OTC Markets Group, under the symbol "OPXXW" on or about August 23, 2016. The offering is expected to close on August 26, 2016, subject to satisfaction of customary closing conditions.

Joseph Gunnar & Co., LLC is acting as sole book-running manager for the offering.

The company intends to use the net proceeds from the offering for acquisitions, marketing and sales activities, and general working capital.

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