Alpine 4 Holdings, a Phoenix-based conglomerate, said it has entered into agreements with institutional investors to sell $24 million of company stock.
The unnamed large investors agreed to purchase 8.6 million of Alpine 4 (Nasdaq: ALPP) common stock and warrants to purchase an additional 4.3 million shares within five years of the issuance date.
The shares will have a combined purchase price of $2.80 each and accompanying one-half warrant pursuant to a registered direct offering. The warrants will have an exercise price of $3.10 per share and will be exercisable immediately. The offering is expected to happen by Friday.
Traders did not react positively to the news; Alpine shares closed at $3.10 on Monday, but dropped 12% to $2.77 by Tuesday’s close following the offering announcement. The share price was down even more Wednesday on the news. Follow the stock here.
This is not the first time Alpine has raised millions by selling directly to institutional investors: The company priced a $50 million direct offer like this back in February.
Alpine 4 uplisted from the OTC Market to the Nasdaq last month. The company currently owns eight operating subsidiary companies working in construction, aerospace, manufacturing and defense.
Alpine 4 Holdings CEO Kent Wilson told the Business Journal last month that he expects big growth for the company in 2022: Its Arizona headcount is expected to grow from 17 now to about 35 next year, with total company headcount expected to to grow from 420 to around 700 while revenue is expected to double from about $70 million this year to $140 million next year.
Alpine 4 Holdings reported its third quarter earnings on Nov. 4 which showed big gains in revenue and profits. Alpine reported $17.39 million in revenue for the quarter ended Sept. 30, which was nearly double the $8.72 million the company made in the same period last year.
The company also reported a quarterly profit of $2.5 million after being unprofitable for most of its history. Alpine is still running a net loss of $6.8 million through the first nine months of the year.
Alpine Holdings is a small cap company, but it has amassed a fervent following of supporters and shareholders over the years. The company has 16,000 followers on Twitter and fans have created a /ALPP Reddit page with more than 6,000 members.
