OSS Announces Public Sale of $1.73 Million in Common Stock

ESCONDIDO, Calif., July 01, 2019 (GLOBE NEWSWIRE) -- One Stop Systems, Inc. (Nasdaq: OSS), a leader in specialized high-performance edge computing, sold today 1,000,000 shares of its common stock at $1.73 per share through Noble Capital Markets for gross proceeds of $1,730,000.

These newly issued shares were acquired by a group of individuals pursuant to Internal Revenue Code (IRC) Section 1202 which provides a tax incentive for taxpayers to invest in small businesses. The underlying purpose of this IRC section allows for capital gains exemption from federal income tax on the sale of small business stock that is held for at least five years. If such holding period requirements are met, a portion or all of the realized gains are excluded from federal tax.

“We are pleased to complete these transactions that allow 1202-type investors with a potential long-term investment horizon to take a strong ownership position in OSS.” said Steve Cooper, president and CEO. “We chose the ATM mechanism because of the low banker fee structure of the transactions. These transactions incurred 1.5% commission fees, and did not include any discounts, warrants or other expenses that are common with other offering types.

“Through Noble we are continuing to offer additional shares to other like-minded 1202 and other investors.  We anticipate keeping this offering open for the next few months with a target to raise a total of $2.5 million, inclusive of these completed transactions.”

The shares of common stock that are being sold through Noble are more fully described in a registration statement on Form S-3 (the “Registration Statement”) which was filed with the Securities and Exchange Commission on May 15, 2019 and became effective on June 19, 2019. The final prospectus (the “Prospectus”) was filed on June 26, 2019.

In addition, as described in the Registration Statement and Prospectus, OSS cannot sell more than one-third of the aggregate market value of its common stock held by non-affiliates in any 12-month period, so long as the aggregate market value of its common stock held by non-affiliates is less than $75.0 million.  Accordingly, as of July 1, 2019, no more than $4.9 million can be sold under this ATM mechanism.

This press release shall not constitute an offer to sell or the solicitation of any offer to buy the securities discussed herein, nor shall there be any offer, solicitation or sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

About One Stop Systems

One Stop Systems, Inc. (OSS) designs and manufactures innovative specialized high-performance computing modules and systems, including customized servers, compute accelerators, expansion systems, flash storage arrays and ION Accelerator storage software. These products are used for deep learning, AI, defense, finance and entertainment applications, and empower scientists, engineers, creators and other professionals to push the boundaries of their industries.

OSS utilizes the power of PCI Express, the latest GPU accelerators and NVMe storage to build award-winning systems, including many industry firsts, for OEMs and government customers. The company enables AI on the Fly™ by bringing AI datacenter performance to ‘the edge’ and on mobile platforms, and by addressing the entire AI workflow, from high speed data acquisition to deep learning, training and inference. OSS products are available directly or through global distributors. For more information, go to .

Forward-Looking Statements

One Stop Systems (OSS) cautions you that statements in this press release that are not a description of historical facts are forward-looking statements. These statements are based on the company's current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by One Stop Systems that any of our plans will be achieved. Actual results may differ from those set forth in this press release due to the risk and uncertainties inherent in our business, including risks described in our prior press releases and in our filings with the Securities and Exchange Commission (SEC), including under the heading "Risk Factors" in our Annual Report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and we undertake no obligation to revise or update this press release to reflect events or circumstances after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Media Contact:

Katie Rivera

One Stop Systems, Inc.

Tel (760) 745-9883

Investor Relations:

Ronald Both or Grant Stude

CMA

Tel (949) 432-7557