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|Jim McCubbin, EVP & CFO
||Brett Maas or David Fore|
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|McLean, VA 22102
PUBLIC OFFERING OF COMMON STOCK
McLean, Virginia – February 26, 2014
– WidePoint Corporation (NYSE Mkt: WYY), a leading provider of secure, cloud-based, enterprise-wide solutions and services
in mobile communications management and identity management, announced today the pricing of an underwritten public offering of
7,876,497 shares of its common stock at a purchase price of $1.38 per share. The gross proceeds to the Company from this offering
are expected to be approximately $10.9 million, before deducting underwriting discounts and other estimated offering expenses.
In addition, WidePoint has granted the underwriters a 30-day option to purchase up to an aggregate of 1,181,475 additional shares
of common stock to cover over-allotments, if any. All of the shares in the offering are to be sold by WidePoint. While the offering
is expected to close on February 28, 2014, the closing of the offering is subject to customary closing conditions and therefore
there can be no assurance as to whether or when the offering will be completed.
WidePoint expects to use the net proceeds from the offering
for general corporate purposes, including for repayment of debt, acquiring businesses and investing in other businesses.
Commenting on the offering, Steve Komar,
Chairman and CEO of WidePoint, said, “This capital raise marks the beginning of an important chapter in the Company’s
history. Over the previous few years including 2013, the Company suffered from numerous headwinds including federal budgetary constraints,
government sequestration and costly efforts to defend various contract awards. As we enter 2014, we are pleased to leave these
issues behind us and move forward with a stable base of recurring revenue, a $600 million blanket purchase agreement with the Department
of Homeland Security that we continue to believe has the opportunity to contribute more than $75 million in incremental annual
revenue once fully ramped, and a number of compelling growth opportunities in both the federal and commercial markets. This new
capital will help support and foster this positive business momentum, while accelerating growth and positioning the business for
long-term value creation.”
In connection with the offering, B. Riley
& Co., LLC is acting as sole book-running manager.
A shelf registration statement (No. 333-193250)
relating to the shares of common stock to be issued in the offering has been filed with the Securities and Exchange Commission
(SEC) and is effective. A preliminary prospectus supplement and accompanying base prospectus relating to the offering was filed
with the SEC on February 25, 2014, and the final prospectus supplement and accompanying base prospectus relating to the offering
will be filed with the SEC and will be available on the SEC’s website located at www.sec.gov. In addition, electronic copies
of the final prospectus supplement and accompanying prospectus, when available, may be obtained by contacting the by contacting
the Compliance Department, B. Riley & Co., LLC, 11100 Santa Monica Blvd., Suite 800, Los Angeles, California 90025 at (888)
295-0155 and at email@example.com.
This press release does not constitute
an offer to sell, or the solicitation of an offer to buy, these securities, nor will there be any sale of these securities in any
state or other jurisdiction in which such offer, solicitation or sale is not permitted.
WidePoint is a leading provider of secure,
cloud-delivered, enterprise-wide mobile and information technology-based solutions that can enable enterprises and agencies to
deploy fully compliant IT services in accordance with government mandated regulations and advanced system requirements. WidePoint
has several major government and commercial contracts. For more information, visit www.widepoint.com.
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995: This press release may contain forward-looking information within the meaning of Section
21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statements of
historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect
to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial condition or results of
operations; (iii) the company's growth strategy and operating strategy; (iv) the company’s ability to generate revenue under
the blanket purchase agreement with the Department of Homeland Security; and (v) the risk factors disclosed in the Company's periodic
reports filed with the SEC. The words "may," "would," "will," "expect," "estimate,"
"anticipate," "believe," "intend" and similar expressions and variations thereof are intended to
identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future
performance and involve risks and uncertainties, many of which are beyond the company's ability to control, and that actual results
may differ materially from those projected in the forward-looking statements as a result of various factors including the risk
factors disclosed in the company's Forms 10-K and 10-Q filed with the SEC.