ENGlobal announces $3.4M registered direct offering

ENGlobal Corporation announced that it has entered into a definitive agreement with a single institutional investor for the purchase and sale of 3,971,000 shares of its common stock, in a registered direct offering and warrants to purchase up to 3,971,000 shares of its common stock, in a concurrent private placement. The combined purchase price for one Share and one Warrant will be $0.85. The Warrants will have an exercise price of $0.95, will be exercisable six months from the issuance date and will expire five years from the initial exercise date. The aggregate gross proceeds from the Offering and the concurrent Private Placement are expected to be approximately $3.4 million before deducting placement agent fees and other estimated offering expenses. The Company intends to use the net proceeds from the Offering and the concurrent Private Placement for working capital and other general corporate purposes. The closing of the Offering and the concurrent Private Placement is expected to occur on or about February 6, 2023, subject to the satisfaction of customary closing conditions. A.G.P./Alliance Global Partners is acting as sole placement agent for the offering.