Astrotech Announces Investment from CEO and Current Shareholder

AUSTIN, Texas–(BUSINESS WIRE)–$ASTC–Astrotech Corporation (“Astrotech” or the “Company”) (NASDAQ: ASTC)
today announced that it has entered into and closed a private placement
of the sale of its equity securities for aggregate gross proceeds to the
Company of approximately $3 million, before deducting offering-related
expenses.

The Company plans to use the proceeds from the financing primarily for
working capital and general corporate purposes. The Company expects that
the addition of these proceeds to its balance sheet will enable the
Company to fund its operating expenses and capital expenditure
requirements into 2019.

The Company’s Chairman of the Board and Chief Executive Officer, Thomas
B. Pickens III, has purchased, for an aggregate purchase price of
approximately $2.037 million, 866,950 shares of the Company’s Series B
convertible preferred stock at an exercise price of $2.35, the closing
price of the Company’s common stock on the NASDAQ Capital Market on
October 8, 2018. The preferred stock will be convertible into an
aggregate of 866,950 shares of the Company’s common stock upon receipt
of shareholder approval in accordance with NASDAQ Listing Rule 5635(b).
In addition, a current Astrotech shareholder has purchased, for an
aggregate purchase price of approximately $963 thousand, 409,645 shares
of the Company’s common stock at a price of $2.35 per share.

The offer and sale of the foregoing securities are being made in a
transaction not involving a public offering and have not been registered
under the Securities Act of 1933, as amended (the “Securities Act”), or
applicable state securities laws, and will be sold in a private
placement pursuant to Regulation D of the Securities Act. The securities
being issued in the private placement may not be offered or sold in the
United States absent registration or pursuant to an exemption from the
registration requirements of the Securities Act and applicable state
securities laws. The Company has agreed to file a registration statement
covering the resale of the shares of common stock acquired by the
existing investor in the private placement, but not the shares of common
stock issuable upon conversion of the preferred stock.

This press release does not constitute an offer to sell or the
solicitation of an offer to buy the securities, nor shall there be any
sale of the securities in any state in which such offer or sale would be
unlawful prior to the registration or qualification under the securities
laws of such state. Any offering of the securities under the resale
registration statement will only be by means of a prospectus.

About Astrotech

Astrotech (NASDAQ: ASTC) is a science and technology development and
commercialization company that launches, manages, and builds scalable
companies based on innovative technology in order to maximize
shareholder value. 1st Detect develops,
manufactures, and sells chemical analyzers for use in the security,
defense, healthcare, and environmental markets. Astral Images
sells film-to-digital image enhancement, defect removal, color
correction, and post processing software, providing economically
feasible conversion of film to the new 4K ultra-high definition (UHD),
high-dynamic range (HDR) format. Astrotech is headquartered in Austin,
Texas. For information, please visit www.astrotechcorp.com.

This press release contains forward-looking statements that are made
pursuant to the Safe Harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are
subject to risks, trends, and uncertainties that could cause actual
results to be materially different from the forward-looking statement.
These factors include, but are not limited to, the Company’s use of
proceeds from the private placement transaction, whether we can
successfully develop our proprietary technologies and whether the market
will accept our products and services, as well as other risk factors and
business considerations described in the Company’s Securities and
Exchange Commission filings including the annual report on Form 10-K for
the fiscal year ended June 30, 2018. Any forward-looking statements in
this document should be evaluated in light of these important risk
factors. In addition, any forward-looking statements included in this
press release represent the Company’s views only as of the date of its
publication and should not be relied upon as representing its views as
of any subsequent date.
The Company assumes no obligation to
update these forward-looking statements.

Contacts

Astrotech Corporation
Eric Stober, 512-485-9530
Chief
Financial Officer
or
IR Contact:
Nicole Conser,
512-485-9530
Director of Marketing

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