Airship AI Announces Closing of $8.0 Million Public Offering

Rhea-AI Summary

Airship AI Holdings, Inc. (NASDAQ: AISP) has successfully closed its previously announced public offering, raising net proceeds of approximately $7.04 million. The offering consisted of 2,882,883 shares of common stock and warrants to purchase an equal number of shares at a combined price of $2.775 per share and associated warrant. The warrants have an exercise price of $2.65 per share, are immediately exercisable, and will expire in five years. Roth Capital Partners and The Benchmark Company, acted as co-placement agents for the offering, which was made pursuant to an effective registration statement. The company plans to use the proceeds for working capital and general corporate purposes.

Positive

• Successfully raised $7.04 million in net proceeds
• Warrants are immediately exercisable, potentially providing additional capital
• Offering was conducted at-the-market under Nasdaq rules, indicating market alignment
• Strengthened cash position for working capital and general corporate purposes

Negative

• Potential dilution of existing shareholders due to issuance of new shares and warrants
• Warrants may lead to further dilution if exercised in the future

Financial Analyst

Airship AI's $8.0 million public offering is a significant capital raise for the company, netting approximately $7.04 million after fees. This influx of cash strengthens their balance sheet and provides working capital for operations and growth initiatives. However, the offering terms reveal potential dilution concerns. The issuance of 2,882,883 new shares and warrants for an equal number of shares at a $2.775 price point, below the $2.65 warrant exercise price, suggests some pressure on the stock. The 4.5% discount to the warrant price might indicate challenges in attracting investors at higher valuations. While the capital raise is positive for liquidity, investors should monitor how effectively management deploys these funds to drive growth and profitability in the competitive AI surveillance market.

Tech Expert

Airship AI's focus on AI-driven video, sensor and data management surveillance solutions positions them in a rapidly growing market. The capital infusion from this offering could accelerate their R&D efforts and market expansion. However, the AI surveillance sector is becoming increasingly crowded with both startups and tech giants. Airship AI will need to demonstrate unique technological advantages to stand out. The use of proceeds for "working capital and general corporate purposes" is vague, leaving questions about specific development plans. Investors should look for upcoming announcements on new product features, partnerships, or client acquisitions that could justify this funding round and drive future growth in the competitive AI landscape.

Market Research Analyst

The at-the-market offering by Airship AI reflects current market conditions for small-cap tech companies. The need for a registered direct offering with warrants suggests some challenges in traditional fundraising channels. The $2.775 per share price, slightly above the $2.65 warrant exercise price, indicates cautious investor sentiment. However, the five-year warrant term provides potential upside for investors if Airship AI can execute successfully. The involvement of reputable placement agents like Roth Capital Partners and The Benchmark Company lends some credibility to the offering. Moving forward, Airship AI's stock performance will likely hinge on their ability to translate this capital into tangible market share gains and financial improvements in the competitive AI surveillance sector.

REDMOND, Wash., Sept. 05, 2024 (GLOBE NEWSWIRE) -- Airship AI Holdings, Inc. (NASDAQ: AISP) (“Airship AI” or the “Company”), a leader in AI-driven video, sensor, and data management surveillance solutions, announced the closing of its previously announced public offering with net proceeds to the Company of approximately $7.04 million, after deducting placement agent fees and offering expenses. The offering consisted of 2,882,883 shares of its common stock and warrants to purchase up to an aggregate of 2,882,883 shares of its common stock at a combined public offering price $2.775 per share and associated common warrant in a registered direct offering priced at-the-market under Nasdaq rules. Each share of common stock was sold together with one warrant to purchase one share of common stock. The warrants have an exercise price of $2.65 per share, are exercisable immediately upon issuance, and will expire five years following the date of issuance. The closing of the offering occurred on September 3, 2024.

Roth Capital Partners and The Benchmark Company, LLC acted as the co-placement agents for the offering.

The Company intends to use the net proceeds from this offering for working capital and general corporate purposes.

The offering was made pursuant to an effective registration statement on Form S-1 (File No. 333-281333) originally filed with the Securities and Exchange Commission (“SEC”) on August 7, 2024, and which became effective on August 29, 2024. The offering was made solely by means of a prospectus. Electronic copies of the final prospectus may be obtained for free on the SEC’s website located at http://www.sec.gov and may also be obtained by contacting Roth Capital Partners, LLC at 888 San Clemente Drive, Newport Beach CA 92660 by phone at (800) 678-9147 or e-mail at rothecm@roth.com, or by contacting The Benchmark Company, LLC at 150 East 58th St., 17th Floor, New York, NY 10155, by telephone: (212) 312-6700, or by email at Prospectus@benchmarkcompany.com.

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

About Airship AI Holdings, Inc.

Founded in 2006, Airship AI (NASDAQ: AISP) is a U.S. owned and operated technology company headquartered in Redmond, Washington. Airship AI is an AI-driven video, sensor and data management surveillance platform that improves public safety and operational efficiency for public sector and commercial customers by providing predictive analysis of events before they occur and meaningful intelligence to decision makers. Airship AI’s product suite includes Outpost AI edge hardware and software offerings, Acropolis enterprise management software stack, and Command family of visualization tools.

For more information, visit https://airship.ai.

Forward-Looking Statements

The disclosure herein includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “project,” “forecast,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward looking. These forward-looking statements include, but are not limited to, the intended use of proceeds from the public offering. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Airship AI’s management and are not predictions of actual performance. Additional information concerning the Company and its business, including a discussion of factors that could materially affect the Company’s financial results are contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 under the heading “Risk Factors,” as well as the Company’s subsequent filings with the SEC. All forward-looking statements included in this press release are made only as of the date of this press release, and we do not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur or of which we hereafter become aware.

Investor Contact:
Chris Tyson/Larry Holub
MZ North America
949-491-8235
AISP@mzgroup.us

FAQ

How much did Airship AI Holdings (AISP) raise in its recent public offering?

Airship AI Holdings (AISP) raised net proceeds of approximately $7.04 million in its recent public offering.

What was the structure of Airship AI's (AISP) public offering on September 3, 2024?

The offering consisted of 2,882,883 shares of common stock and warrants to purchase an equal number of shares at a combined price of $2.775 per share and associated warrant.

What are the terms of the warrants issued by Airship AI (AISP) in its September 2024 offering?

The warrants have an exercise price of $2.65 per share, are exercisable immediately upon issuance, and will expire five years following the date of issuance.

How does Airship AI (AISP) plan to use the proceeds from its September 2024 public offering?

Airship AI intends to use the net proceeds from the offering for working capital and general corporate purposes.