TEL AVIV - Arbe Robotics Ltd. (NASDAQ, TASE: NASDAQ:ARBE), known for its Perception Radar Solutions, has disclosed the pricing of its public offering. The company is issuing 8,250,000 ordinary shares, including pre-funded warrants, and two tranches of warrants to purchase additional shares. The offering is set at a combined price of $1.82 per share and warrant, with the potential to bring in approximately $15 million in gross proceeds before expenses.
The Tranche A Warrants, priced at $2.35 per share, will be immediately exercisable and are set to expire on November 4, 2029. The Tranche B Warrants have an exercise price of $1.82 per share and will also be immediately exercisable, expiring on the earlier of a specified triggering event related to a supply agreement with a European automotive manufacturer or on November 4, 2027.
The closing of the offering is anticipated around November 4, 2024, contingent on standard closing conditions. The company has engaged Canaccord Genuity as the sole bookrunner and Roth Capital Partners as the co-manager for the transaction.
Arbe intends to allocate the net proceeds from this offering towards working capital and general corporate purposes. The additional exercise of warrants could potentially yield an extra $34.4 million, although there is no certainty that the warrants will be exercised.
The offering is pursuant to a previously filed registration statement with the Securities and Exchange Commission (SEC), which became effective on February 24, 2023. Final prospectus details will be available on the SEC’s website and from Canaccord Genuity upon release.
Arbe, headquartered in Tel Aviv with a global footprint including China, Germany, and the U.S., is at the forefront of radar technology for autonomous vehicles. Its radar systems are acclaimed for their high resolution, contributing to the progression towards full autonomous driving.
The details provided in this article are based on a press release statement and contain forward-looking statements that are subject to various risks and uncertainties. It is important to note that actual results could differ from those projected in the forward-looking statements due to multiple factors.
In other recent news, Arbe Robotics Ltd. has been making significant strides in its radar technology development. The company recently announced a public offering of its shares and warrants, the specifics of which are contingent on market conditions. Arbe has also revealed a collaboration with HiRain Technologies to develop an Advanced Driver Assistance Systems (ADAS) for a Chinese automaker, targeting production for Q4 2025. In addition, Arbe has secured a 7 million euro deal with Tianyi Transportation Technology, set to commence in Q3 2024.
The company also disclosed during their Q2 2024 earnings call the acquisition of two major customers, a top 10 global OEM, and a well-known European truck manufacturer. Despite a net loss of $11.8 million for Q2 2024, revenue from these deals is anticipated by late 2025 or early 2026. Arbe's Q2 2024 financials showed a revenue of $0.4 million, a gross margin of -9.5%, and operating expenses of $11.6 million.
Arbe's 2024 guidance includes achieving four design-ins with automakers and projecting an adjusted EBITDA loss between $30 million to $36 million. These developments showcase Arbe's active pursuit of securing four design wins with leading global automakers. The company's radar technology is recognized for its affordability and power efficiency, with key markets identified in China, Japan, and Europe for the next year.
InvestingPro Insights
As Arbe Robotics Ltd. (NASDAQ, TASE: ARBE) moves forward with its public offering, it's crucial to consider some key financial metrics and insights provided by InvestingPro. The company's market capitalization stands at $147.26 million, reflecting its current position in the autonomous vehicle technology sector.
InvestingPro Data reveals that Arbe's revenue for the last twelve months as of Q2 2024 was $1.37 million, with a concerning revenue growth of -33.04% over the same period. However, it's worth noting that the company showed a 41.52% quarterly revenue growth in Q2 2024, indicating some recent positive momentum.
Two relevant InvestingPro Tips highlight potential challenges for investors:
1. Arbe is quickly burning through cash, which aligns with the company's decision to raise funds through this public offering.
2. The company is not profitable over the last twelve months, underscoring the importance of the capital raised for sustaining operations and development.
These insights provide context to Arbe's current financial strategy and the necessity of the public offering. The company's focus on allocating the proceeds towards working capital and general corporate purposes appears to be a critical move to support its ongoing operations and technological development in the competitive autonomous vehicle market.
For investors considering Arbe's potential, it's worth noting that InvestingPro offers 5 additional tips that could provide further insights into the company's financial health and market position. These additional tips, available with an InvestingPro subscription, could be valuable for making informed investment decisions in this rapidly evolving tech sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.