Netcapital Inc. Announces Closing of Public Offering

BOSTON, July 15, 2022–(BUSINESS WIRE)–netcapital inc. (Nasdaq: NCPL, NCPLW) (the “Company”), a fintech company with a scalable technology platform that enables private companies to raise capital online from accredited and non-accredited investors, announced today the closing of its previously announced subscribed public offering of 1,205,000 common shares and warrants of the Company to purchase up to 1,205,000 common shares of the Company at a combined public offering price of 4.15 $ per share and warrant. The gross proceeds of the offering were $5,000,750 before deducting underwriting rebates, commissions and other offering expenses. The warrants have an exercise price per share of $5.19, are exercisable immediately and expire five years from the date of issue.

The shares and warrants began trading on the Nasdaq Capital Market on July 13, 2022, under the symbols “NCPL” and “NCPLW”, respectively.

In addition, the Company has granted the underwriter a 45-day option to purchase up to 180,750 additional common shares and/or up to 180,750 additional warrants to cover over-allotments, if any. In connection with the closing of the offering, the underwriter partially exercised its over-allotment option and purchased an additional 111,300 warrants. The underwriter retains the right to exercise the balance of its over-allotment option within the 45-day period.

ThinkEquity acted as sole bookrunner for the offering.

The Company intends to use the net proceeds of the offering for research and development activities (including the development of a mobile application), sales and marketing, general working capital purposes, potential acquisitions of other companies, products or technologies, and to repay certain debts.

The registration statement on Form S-1 (File No. 333-262688) relating to the shares sold pursuant to this offering has been filed with the United States Securities and Exchange Commission (the “SEC”) and is effective July 12, 2022. A final prospectus relating to the offering has been filed and is available on the SEC’s website at https://www.sec.gov. The offering was made only by means of a prospectus. Electronic copies of the final prospectus can be obtained from ThinkEquity, 17 State Street, 41st Floor, New York, New York 10004, by phone at (877) 436-3673 and by email at prospectus@think-equity.com.

About Netcapital Inc.

Netcapital Inc. is a financial technology company with a scalable technology platform that enables private companies to raise capital online from accredited and non-accredited investors. We give all investors the opportunity to access investments in private companies. Our model disrupts traditional private equity investing and is based on Title III, Reg CF of the JOBS Act. Our advisory group, Netcapital Advisors, provides marketing and strategic advice in exchange for equity investments. The Netcapital funding portal is registered with the SEC, is a member of the Financial Industry Regulatory Authority, or FINRA, a national registered securities association, and offers investors the opportunity to invest in private companies.

Forward-looking statements

This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements in this press release can be identified by the use of words such as “anticipate”, “believe”, “intend”, “could”, “estimate”, “expect”, “have the ‘intent to’, ‘seek,’ ‘may’, ‘could’, ‘plan’, ‘potential’, ‘predict’, ‘project’, ‘target’, ‘aim’, ‘should’, ‘will’, ‘ would” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on Netcapital Inc.’s current expectations and are subject to uncertainties, risks and inherent assumptions that are difficult to predict. In addition, certain forward-looking statements are based on assumptions about future events that may not prove to be accurate. These and other risks and uncertainties are described in more detail in the section entitled “Risk Factors” of the final prospectus relating to the public offer e filed with the Securities and Exchange Commission. The forward-looking statements contained in this announcement are made as of this date, and Netcapital Inc. undertakes no obligation to update such information except as required by applicable law.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220715005459/en/

contacts

Coreen Kraysler, CFA
CFO
coreen.kraysler@netcapital.com
781-925-1700

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