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PRECISION OPTICS CORPORATION 22 EAST BROADWAY GARDNER, MASSACHUSETTS 01440-3338 Telephone 978 / 630-1800 Telefax 978 / 630-1487 NEWS RELEASE POC25-0005 FOR IMMEDIATE RELEASE Thursday

Key Takeaway: Precision Optics Corporation has announced a successful pricing of $5.1 million in common stock as part of a registered direct offering to investors and certain directors. The company plans to use the net proceeds primarily for business expansion and debt repayment. The offering, which is scheduled to close around February 21, 2025, is aimed at supporting the company’s growth and operations within the medical and defense/aerospace sectors. As detailed in the release, the offering is subject to standard closing conditions, which could present risks.

Market Sentiment Analysis

POSITIVE FACTORS

  • The company successfully raised $5.1 million through the sale of common stock.
  • Funds will be used for business expansion and to repay debt, indicating growth potential.
  • Offering was led by existing shareholders, suggesting confidence in the company's future.

CONCERNS & RISKS

  • Possible risks are associated with the closing conditions of the offering.
  • Product demand and global economic activity create uncertainties for future performance.

Full Press Release Details

NEWS RELEASE POC25-0005
FOR IMMEDIATE RELEASE Thursday, February 20, 2025
Announces $5.1 Million Pricing of Common Stock to Fund Business Expansion
GARDNER, MA, February 20, 2025. Precision Optics
Corporation, Inc. (NASDAQ: POCI), a leading designer and manufacturer of advanced optical instruments for the medical and defense/aerospace
industries, today announced that it has entered into securities purchase agreements with institutional and accredited investors in addition
to certain directors of the Company for the purchase and sale of 1,272,500 shares of the Company's common stock, par value $0.01 per share,
pursuant to a registered direct offering at a purchase price of $4.00 per share, resulting in gross proceeds of approximately $5.1 million,
and expected net proceeds of approximately $5.0 million after deducting offering expenses. The Company intends to use the net proceeds
from the offering to repay certain indebtedness, expand its facilities to support expected growth and related general working capital
The closing of the offering, which was led by
existing shareholders, is expected to occur on or about February 21, 2025, subject to the satisfaction of customary closing conditions.
This offering is being made pursuant to an effective
shelf registration statement on Form S-3 (File No. 333-280047) previously filed with the U.S. Securities and Exchange Commission (the
"SEC") and declared effective on June 14, 2024. A prospectus supplement describing the terms of the offering will be filed
with the SEC and will be available on the SEC's website located at http://www.sec.gov.
This press release shall not constitute an offer
to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction
in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any
such state or other jurisdiction.
About Precision Optics Corporation
Founded in 1982, Precision Optics is a vertically
integrated optics company primarily focused on leveraging its proprietary micro-optics, 3D imaging and digital imaging technologies to
the healthcare and defense/aerospace industries by providing services ranging from new product concept through mass manufacture. Utilizing
its leading-edge in-house design, prototype, regulatory and fabrication capabilities as well as its Ross Optical division's high volume
world-wide sourcing, inspecting and production resources, the Company is able to design and manufacture next-generation product solutions
to the most challenging customer requirements. Within healthcare, Precision Optics enables next generation medical device companies around
the world to meet the increasing demands of the surgical community who require more enhanced and smaller imaging systems for minimally
invasive surgery as well as 3D endoscopy systems to support the rapid proliferation of surgical robotic systems. In addition to these
next generation applications, Precision Optics has supplied top tier medical device companies a wide variety of optical products for decades,
including complex endocouplers and specialized endoscopes. The Company is also leveraging its technical proficiency in micro-optics to
enable leading edge defense/aerospace applications which require the highest quality standards and the optimization of size, weight and
power. For more information, please visit www.poci.com.
About Forward-Looking Statements
contains forward-looking statements within the meaning of U.S. federal securities laws. Such forward-looking statements include, but are
not limited to, statements regarding the closing of this offering. Any statements contained herein
that are not statements of historical fact may be deemed to be forward-looking statements. In addition, any statements that refer to projections,
forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements.
The words "anticipate," "believe," "continue," "could," "estimate," "expect,"
"intends," "may," "might," "plan," "possible," "potential," "predict,"
"project," "should," "would" and similar expressions may identify forward-looking statements, but the absence
of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this press release are
based on certain assumptions and analyses made by the management of the Company in light of their respective experience and perception
of historical trends, current conditions, and expected future developments and their potential effects on the Company as well as other
factors they believe are appropriate in the circumstances. There can be no assurance that future developments affecting the Company will
be those anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control
of the parties), or other assumptions that may cause actual results or performance to be materially different from those expressed or
implied by these forward-looking statements, including risks that the closing conditions for this offering will
not be achieved, the demand for the Company's products, global supply chains and economic activity in general and other risks and uncertainties
identified in the Company's filings with the SEC. Should one or more of these risks or uncertainties materialize or should any of the
assumptions being made prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements.
We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events,
or otherwise, except as may be required under applicable securities laws.
PRECISION OPTICS CORPORATION
Gardner, Massachusetts 01440-3338
Telephone: 978-630-1800
LYTHAM PARTNERS, LLC
Telephone: 602-889-9700

Frequently Asked Questions

What is the amount raised by Precision Optics in the recent offering?

Precision Optics raised approximately $5.1 million from its stock offering.

What will the funds from the offering be used for?

The proceeds will be used to repay debt, expand facilities, and for general working capital.

When is the closing date for the stock offering?

The offering is expected to close on or about February 21, 2025.

What type of company is Precision Optics Corporation?

Precision Optics designs and manufactures advanced optical instruments for medical and defense.

How can investors view the offering details?

Investors can find the offering prospectus on the SEC's website at www.sec.gov.

Last updated: Feb 20, 2025