TEL AVIV – Arbe Robotics Ltd. (NASDAQ, TASE: NASDAQ:), a company specializing in Perception Radar Solutions, has announced the pricing of an underwritten public offering of its ordinary shares. The offering is priced at $3.20 per share, with the company expecting to raise approximately $29 million in gross proceeds before deductions for underwriting discounts, commissions, and other expenses. According to InvestingPro data, the stock has shown remarkable momentum with a 115% return over the past week, though current analysis suggests the stock is trading above its Fair Value.
The offering includes 8,984,375 ordinary shares, with an additional option granted to underwriters to purchase up to 1,347,656 shares within a 30-day period at the public offering price, minus the underwriting discounts and commissions. This option is part of the company’s strategy to potentially increase the offering’s proceeds. The closing of the offering is anticipated on or about January 8, 2025, contingent upon fulfilling customary closing conditions.
Arbe intends to allocate the net proceeds from this offering towards working capital and general corporate purposes. Canaccord Genuity is serving as the sole bookrunner for the transaction.
The shares are offered through a shelf registration statement on Form F-3, initially filed on January 13, 2023, and declared effective by the Securities and Exchange Commission (SEC) on February 24, 2023. The final prospectus supplement and accompanying prospectus, which will detail the terms of the offering, will be filed with the SEC and will be accessible on the SEC’s website.
Arbe Robotics is recognized as a leader in radar technology, providing detailed Perception Radar that is integral to the development of advanced driver-assistance systems and the progression towards fully autonomous driving. The company’s technology is aimed at enhancing safety features in vehicles across various sectors, including automotive, commercial, and industrial applications. With a current market capitalization of $389 million, InvestingPro subscribers can access 12 additional key insights about Arbe’s financial health, valuation metrics, and growth prospects through the comprehensive Pro Research Report, helping investors make more informed decisions about this emerging tech player.
This announcement of the share offering is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction where such an offer would be unlawful. The information provided herein is strictly factual, reporting on the details and specifics of the share offering as announced by Arbe Robotics Ltd.
In other recent news, Arbe Robotics has made significant strides in its technological advancements and collaborations, despite facing financial challenges. The company’s collaboration with NVIDIA (NASDAQ:), aiming to enhance automotive free space mapping and AI-driven capabilities, has been a major development. The partnership involves integrating Arbe’s high-resolution radar with the NVIDIA DRIVE AGX in-vehicle computing platform, a move expected to revolutionize radar-based free space mapping and safety applications.
Arbe Robotics’ Q3 2024 financial results, however, showed a decline in revenue from $500,000 in Q3 2023 to $100,000. The operating loss also increased from $11.6 million to $12.4 million. To bolster its financial position, the company completed a public offering of $49 million. Despite these challenges, Arbe Robotics is working with 16 original equipment manufacturers, with 12 of them in the advanced stage of collaboration.
The company’s radar technology, celebrated for its AI-powered processing and high-resolution point cloud, will be demonstrated at CES 2025. This technology is designed to handle complex urban environments and detect small obstacles, contributing to the enhancement of Advanced Driver-Assistance Systems and autonomous driving capabilities. These are among the recent developments for Arbe Robotics.
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