FEIM · Frequency Electronics, Inc.

This event marks a significant capital raise for Frequency Electronics, providing the company with approximately $62.5 million in gross proceeds. The offering was conducted via an underwritten public offering, with Morgan Stanley & Co. LLC acting as representative of the underwriters. The company used a shelf registration statement on Form S-3. The capital injection strengthens the company's balance sheet and provides resources for potential growth initiatives, such as research and development, working capital, or possible acquisitions. The participation of selling stockholders, Edenbrook Value Fund and Edenbrook Long Only Value Fund, indicates that existing investors partially exited their positions, which could be interpreted as a mixed signal, though the company itself raised meaningful capital. The underwriters' option to purchase additional shares offers potential for further capital if exercised. Overall, this offering enhances the company's financial flexibility and supports its strategic objectives.