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Peraso Announces Exercise of Warrants for $2.9 Million in Gross Proceeds

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Peraso announced the exercise of Series B warrants to purchase 2,246,030 shares of common stock at a reduced price of $1.30 per share, expecting to raise $2.9 million in gross proceeds. In exchange, the company will issue new unregistered Series C and D warrants to purchase up to 2,246,030 shares each at $1.61 per share. The Series C warrants have a 6-month term while Series D warrants extend to 5 years. Additionally, Peraso reduced the exercise price to $1.30 for non-participating warrant holders until November 8, 2024. The proceeds will be used for working capital and general corporate purposes.

Peraso ha annunciato l’esercizio delle opzioni di Serie B per l'acquisto di 2.246.030 azioni ordinarie a un prezzo scontato di $1,30 per azione, prevedendo di raccogliere $2,9 milioni in proventi lordi. In cambio, l'azienda emetterà nuove opzioni non registrate di Serie C e D per acquistare fino a 2.246.030 azioni ciascuna a $1,61 per azione. Le opzioni di Serie C hanno una scadenza di 6 mesi, mentre le opzioni di Serie D si estendono fino a 5 anni. Inoltre, Peraso ha ridotto il prezzo di esercizio a $1,30 per i detentori di opzioni non partecipanti fino all’8 novembre 2024. I proventi saranno utilizzati per il capitale circolante e per scopi aziendali generali.

Peraso anunció el ejercicio de las opciones de la Serie B para comprar 2,246,030 acciones ordinarias a un precio reducido de $1.30 por acción, esperando recaudar $2.9 millones en ingresos brutos. A cambio, la compañía emitirá nuevas opciones no registradas de las Series C y D para comprar hasta 2,246,030 acciones cada una a $1.61 por acción. Las opciones de la Serie C tienen un plazo de 6 meses, mientras que las opciones de la Serie D se extienden hasta 5 años. Además, Peraso redujo el precio de ejercicio a $1.30 para los tenedores de opciones no participantes hasta el 8 de noviembre de 2024. Los ingresos se destinarán al capital de trabajo y a fines corporativos generales.

Peraso$1.30의 할인된 가격으로 2,246,030 주의 보통주를 구매하기 위한 B 시리즈 워런트를 행사한다고 발표하며, $2.9 백만의 총 수익을 올릴 것으로 예상하고 있습니다. 이에 대한 대가로 회사는 각 $1.61에 최대 2,246,030 주를 구매할 수 있는 신규 비등록 C 및 D 시리즈 워런트를 발행할 것입니다. C 시리즈 워런트는 6개월의 기간이 있으며, D 시리즈 워런트는 5년으로 연장이 됩니다. 추가로, Peraso는 2024년 11월 8일까지 비참여 워런트 보유자를 위해 행사 가격을 $1.30으로 낮췄습니다. 수익금은 운영 자금 및 일반 기업 용도로 사용될 예정입니다.

Peraso a annoncé l'exercice de bons de souscription de série B pour l'achat de 2 246 030 actions ordinaires à un prix réduit de $1,30 par action, espérant lever $2,9 millions en produits bruts. En échange, la société émettra de nouveaux bons de souscription non enregistrés de séries C et D pour acheter jusqu'à 2 246 030 actions chacune à $1,61 par action. Les bons de souscription de la série C ont un terme de 6 mois tandis que ceux de la série D s'étendent sur 5 ans. De plus, Peraso a réduit le prix d'exercice à $1,30 pour les détenteurs de bons de souscription non participants jusqu'au 8 novembre 2024. Les produits seront utilisés pour le fonds de roulement et à des fins d'entreprise générale.

Peraso gab bekannt, dass die Ausgabe von Serie B Warrants zum Kauf von 2.246.030 Stammaktien zu einem reduzierten Preis von $1,30 pro Aktie erfolgt, wobei erwartet wird, $2,9 Millionen brutto zu sammeln. Im Gegenzug wird das Unternehmen neue unregistrierte Serie C- und D-Warrants ausgeben, um jeweils bis zu 2.246.030 Aktien zu einem Preis von $1,61 pro Aktie zu kaufen. Die Serie C-Warrants haben eine Laufzeit von 6 Monaten, während die Serie D-Warrants auf 5 Jahre verlängert werden. Zudem hat Peraso den Ausübungspreis für nicht teilnehmende Warrant-Inhaber bis zum 8. November 2024 auf $1,30 gesenkt. Die Einnahmen werden für Betriebskapital und allgemeine Unternehmenszwecke verwendet.

Positive
  • Immediate capital raise of $2.9 million through warrant exercise
  • New warrants priced at $1.61, representing a 24% premium over exercise price
Negative
  • Dilutive effect from potential exercise of additional 4.49 million new warrants
  • Reduced warrant exercise price from original terms indicates potential financing pressure

Insights

This warrant exercise transaction provides important working capital for Peraso, bringing in $2.9 million in gross proceeds. The deal involves complex warrant restructuring, with existing Series B warrants being exercised at a reduced price of $1.30 per share and new Series C and D warrants being issued with a higher exercise price of $1.61.

The financial impact is significant for a micro-cap company with a market cap of just $4.4 million. The dilution effect is substantial, with over 2.2 million new shares being issued, plus potential future dilution from the new warrants. However, the immediate cash injection is critical for operations, though placement agent fees will reduce the net proceeds.

The short 6-month term on Series C warrants and 5-year term on Series D warrants, combined with the company's call option on Series D warrants, suggests a strategic approach to managing future dilution while securing immediate funding.

SAN JOSE, CA / ACCESSWIRE / November 5, 2024 / Peraso Inc. (NASDAQ:PRSO) ("Peraso" or the "Company"), a pioneer in mmWave wireless technology solutions, announced today the entry into definitive agreements for the immediate exercise of certain outstanding Series B warrants to purchase up to an aggregate of 2,246,030 shares of common stock, issued by Peraso in February 2024 (the "Existing Warrants"), at a reduced exercise price of $1.30 per share. The shares of common stock issuable upon exercise of the Existing Warrants are registered pursuant to an effective registration statement on Form S-1 (File No. 333-276247).

Ladenburg Thalmann & Co. Inc. is acting as the exclusive placement agent for the offering.

In consideration for the immediate exercise of the Existing Warrants for cash, Peraso will issue new unregistered Series C warrants to purchase up to 2,246,030 shares of common stock (the "Series C Warrants") and new unregistered Series D warrants to purchase up to 2,246,030 shares of common stock (the "Series D Warrants," and collectively with the Series C Warrants, the "New Warrants"). The New Warrants will have an exercise price of $1.61 per share (priced at-the-market under the rules of the Nasdaq Stock Market) and will be exercisable upon issuance. The Series C Warrants will have a term equal to six months from the date of issuance, and the Series D Warrants will have a term equal to five years from the date of issuance. The Series D Warrants will also provide that, subject to certain exceptions, if certain conditions are met over a certain measurement period, then the Company may call for cancellation of all or any portion of the Series D Warrants which are not exercised by holders within 10 trading days following receipt of a call notice from the Company.

In connection with the transaction, Peraso also reduced the exercise price of the Existing Warrants to purchase an aggregate of 1,728,490 shares of common stock for all holders not participating in the transaction to $1.30 per share until November 8, 2024, which is the expiration date of the Existing Warrants.

The gross proceeds to Peraso from the exercise of the Existing Warrants are expected to be approximately $2.9 million, prior to deducting placement agent fees and offering expenses. The Company intends to use the net proceeds for working capital and general corporate purposes.

The New Warrants described above were offered in a private placement pursuant to an applicable exemption from the registration requirements of the Securities Act of 1933, as amended (the "1933 Act"), and, along with the shares of common stock issuable upon exercise, have not been registered under the 1933 Act, and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission ("SEC") or an applicable exemption from such registration requirements. Peraso has agreed to file a registration statement with the SEC covering the resale of the shares of common stock issuable upon exercise of the New Warrants.

Additional information regarding the offering will be available in a Form 8-K to be filed with the SEC.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in this offering, 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 Peraso Inc.
Peraso Inc. (NASDAQ:PRSO) is a pioneer in high performance 60 GHz unlicensed and 5G mmWave wireless technology, offering chipsets, modules, software and IP. Peraso supports a variety of applications, including fixed wireless access, military, immersive video and factory automation. In addition, Peraso's solutions for data and telecom networks focus on Accelerating Data Intelligence and Multi-Access Edge Computing, providing end-to-end solutions from the edge to the centralized core and into the cloud. For additional information, please visit www.perasoinc.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and Private Securities Litigation Reform Act, as amended, which are intended to be covered by the "safe harbor" created by those sections. All statements in this release that are not based on historical fact are "forward-looking statements." These statements may be identified by words such as "estimates," "anticipates," "projects," "plans," "strategy," "goal," or "planned," "seeks," "may," "might," "will," "expects," "intends," "believes," "should," and similar expressions, or the negative versions thereof, and which also may be identified by their context. Such statements are based on information available to the Company as of the date of this press release and are subject to numerous important factors, risks and uncertainties that may cause actual events or results to differ materially from the Company's current expectations, including market conditions, risks associated with the cash requirements of Peraso's business and other risks detailed from time to time in the Company's filings with the SEC, and represent views only as of the date they are made and should not be relied upon as representing views as of any subsequent date. Peraso undertakes no obligation to update publicly any forward-looking statement for any reason, except as required by law, even as new information becomes available or other events occur in the future.

Investor Relations Contacts:
Shelton Group
Brett L. Perry | Leanne K. Sievers
P: 214-272-0070| 949-224-3874
E: sheltonir@sheltongroup.com

Peraso Company Contact
James Sullivan
CFO
jsullivan@perasoinc.com

Contact Information

Beverly Twing
Shelton IR
btwing@sheltongroup.com
972-239-5119

SOURCE: Peraso Inc.



View the original press release on accesswire.com

FAQ

How much money did Peraso (PRSO) raise from the warrant exercise in November 2024?

Peraso raised approximately $2.9 million in gross proceeds from the warrant exercise.

What is the exercise price of the new Series C and D warrants for Peraso (PRSO)?

The new Series C and D warrants have an exercise price of $1.61 per share.

How long are the terms for Peraso's (PRSO) new Series C and D warrants?

The Series C warrants have a 6-month term, while the Series D warrants have a 5-year term from the date of issuance.

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