Knightscope Closes $1.7 Million Registered Direct Offering of Common Stock

Rhea-AI Summary

Knightscope (NASDAQ: KSCP), a developer of autonomous security robots and AI technologies, has completed a registered direct offering of 625,000 shares of Class A common stock at $2.75 per share, raising approximately $1.7 million in gross proceeds. H.C. Wainwright & Co. served as the exclusive placement agent for the offering.

The company plans to utilize the net proceeds for working capital and general corporate purposes. The securities were offered through a previously filed and effective 'shelf' registration statement on Form S-3, with the offering conducted via a prospectus supplement and accompanying base prospectus.

Positive

• Secured $1.7 million in additional funding
• Successfully completed registered direct offering

Negative

• Potential dilution of existing shareholders through issuance of 625,000 new shares
• Offering price of $2.75 per share indicates capital raised at current market conditions

Insights

Financial Analyst

Knightscope's $1.7 million registered direct offering represents significant dilution for current shareholders of this small-cap security robotics company. With a market capitalization of only $16.9 million, this offering of 625,000 shares at $2.75 per share (a 2.5% discount to the current price) represents approximately 10% of the company's market value.

The dilutive impact is substantial given the relatively modest amount raised. While the minimal discount to current share price suggests reasonable investor confidence, the vague designation of proceeds for "working capital and general corporate purposes" provides little insight into strategic initiatives that might generate returns to offset this dilution.

For small technology companies, capital raises are often necessary for growth, but the lack of specificity regarding how these funds will drive future value is concerning. After deducting placement agent fees and offering expenses, the net proceeds will be even less than the $1.7 million gross amount.

This capital raise may provide short-term operational runway, but it comes at the cost of equity dilution without a clearly articulated growth strategy to justify the shareholder impact. The financing approach through a registered direct offering is more efficient than some alternatives, but still represents a negative development for existing shareholders absent more compelling information about strategic deployment of these funds.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- Knightscope, Inc. (NASDAQ: KSCP), a leader in developing autonomous security robots and artificial intelligence technologies, closed on the previously announced sale of an aggregate of 625,000 shares of the Company’s Class A common stock at a purchase price of $2.75 per share in a registered direct offering.

H.C. Wainwright & Co. acted as the exclusive placement agent for the offering.

The gross proceeds to the Company from the offering were approximately $1.7 million, before deducting the placement agent’s fees and other offering expenses payable by the Company. The Company currently intends to use the net proceeds from the offering for working capital and general corporate purposes.

The securities described above were offered and sold by the Company pursuant to a “shelf” registration statement on Form S-3 (Registration No. 333-269493), including a base prospectus, previously filed with the Securities and Exchange Commission (“SEC”) on February 1, 2023 and declared effective by the SEC on February 8, 2023, and a prospectus supplement and accompanying base prospectus relating to the offering filed with the SEC on March 31, 2025. The offering of the securities is being made only by means of a prospectus supplement that forms a part of such registration statement. The prospectus supplement and accompanying base prospectus are available on the SEC’s website located at http://www.sec.gov. Electronic copies of the prospectus supplement and accompanying base prospectus may also be obtained by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by phone at (212) 856-5711 or e-mail at placements@hcwco.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or 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 jurisdiction.

About Knightscope

Knightscope is transforming public safety with cutting-edge robotics and AI technologies. From autonomous security robots to advanced detection systems, Knightscope is committed to building safer communities where you live, work, study and visit. Our long-term ambition is bold but simple: to make the United States of America the safest country in the world. Learn more about us at www.knightscope.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of words such as "should," "may," "intends," "anticipates," "believes," "estimates," "projects," "forecasts," "expects," "plans," "proposes" and similar expressions. Forward-looking statements contained in this press release and other communications include, but are not limited to, statements about the Company’s goals, profitability, growth, prospects, reduction of expenses, and outlook. Although Knightscope believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks, uncertainties and other important factors that could cause actual results to differ materially from such forward-looking statements, including the factors discussed under the heading "Risk Factors" in Knightscope’s Annual Report on Form 10-K for the year ended December 31, 2024, as updated by its other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of the document in which they are contained, and Knightscope does not undertake any duty to update any forward-looking statements, except as may be required by law.

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Public Relations

Drew McDowell

press@yourwashingtonoffice.com

Knightscope, Inc.

(650) 924-1025 ext. 6

Source: Knightscope, Inc.

FAQ

How much did Knightscope (KSCP) raise in their latest direct offering?

Knightscope raised $1.7 million in gross proceeds through a registered direct offering of 625,000 shares at $2.75 per share.

What is the price per share for Knightscope's (KSCP) March 2025 direct offering?

The purchase price was set at $2.75 per share for the Class A common stock.

How will Knightscope (KSCP) use the proceeds from the $1.7M offering?

The company intends to use the net proceeds for working capital and general corporate purposes.

Who was the placement agent for Knightscope's (KSCP) March 2025 offering?

H.C. Wainwright & Co. acted as the exclusive placement agent for the offering.