Presto Automation Announces Pricing of $1.2M Registered Direct Offering Priced above Nasdaq Minimum Price
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The recent announcement by Presto Automation, Inc. regarding a registered direct offering of 4,800,000 shares at $0.25 each, above the Nasdaq Minimum Price, presents a significant capital infusion for the company. This move suggests investor confidence, as institutional investors are willing to purchase shares at a premium. The capital raised can be deployed towards strategic growth initiatives, research and development, or strengthening the balance sheet. A key consideration for stakeholders is the potential dilutive effect on existing shareholders, as the increase in the number of shares could lead to earnings per share being spread over a larger base. However, if the funds are utilized effectively, the long-term growth could offset this dilution.
Presto Automation's position as a major AI and automation technology provider to the restaurant industry places it within a sector that is increasingly adopting technology to improve efficiency and customer experience. The influx of capital through this stock offering could facilitate Presto's expansion within the market and enable it to capitalize on emerging opportunities such as contactless ordering and kitchen automation. The funding could also help the company to stay ahead in a competitive landscape by investing in new technologies and partnerships. Market trends indicate a growing appetite for such innovations, which could translate to increased demand for Presto's offerings, potentially boosting its market share and revenue growth in the long run.
The pricing of the offering at $0.25 per share, which is above the Nasdaq Minimum Price, indicates a premium valuation of Presto Automation's stock by the institutional investors, reflecting a positive outlook on the company's financial health and market potential. The decision to engage in a registered direct offering rather than a traditional public offering suggests a targeted approach to raise capital, likely to minimize dilution and expedite the process. The economic impact of this transaction on the company's stock performance will depend on the market's perception of the use of proceeds and the company's ability to leverage the capital for profitable growth. It will be important to monitor the subsequent financial reports to assess the impact of this capital raise on the company's financial metrics and operational outcomes.
SAN CARLOS, Calif., March 14, 2024 (GLOBE NEWSWIRE) -- Presto Automation, Inc. (“Presto” or the “Company”) (NASDAQ: PRST), one of the largest AI and automation technology providers to the restaurant industry, announced today that it has entered into a securities purchase agreement with institutional investors, providing for the purchase and sale of 4,800,000 shares of common stock in a registered direct offering, at a price per share of
Chardan is acting as sole placement agent for the offering.
The gross proceeds to Presto from this offering are expected to be approximately
The offering is being made pursuant to a shelf registration statement on Form S-3 (File No. 333-275112) (including a base prospectus) previously filed with the Securities and Exchange Commission (the “SEC”) on October 20, 2023 and declared effective by the SEC on October 30, 2023. A prospectus supplement and the accompanying base prospectus relating to and describing the terms of the offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. When available, copies of the prospectus supplement and the accompanying base prospectus relating to the offering may also be obtained by contacting Chardan Capital Markets, LLC, Attn: Capital Markets, 17 State Street, Suite 2100, New York, New York 10004, by email at prospectus@chardan.com.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, 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 Presto Automation
Presto (Nasdaq: PRST) provides enterprise-grade AI and automation solutions to the restaurant industry. Presto’s solutions are designed to decrease labor costs, improve staff productivity, increase revenue, and enhance the guest experience. Presto offers its AI solution, Presto Voice™, to quick service restaurants (QSR) and its pay-at-table tablet solution, Presto Touch, to casual dining chains. Some of the most recognized restaurant names in the United States are among Presto’s customers, including Carl’s Jr., Hardee’s, and Checkers for Presto Voice™.
Cautionary Note Regarding Forward-Looking Statements
This press release contains statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, including statements about the closing of the offering, are forward-looking statements. When used in this press release, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “initiatives,” “continue,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. The forward-looking statements speak only as of the date of this press release or as of the date they are made. The Company cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of the Company. In addition, the Company cautions you that the forward-looking statements contained in this press release are subject to risks and uncertainties, including but not limited to, the Company’s ability to secure additional capital resources, the Company’s ability to compete successfully to maintain the relationship with Checkers, the Company’s ability to continue to roll out its AI technology with current franchisees, the Company’s ability to engage with new customers for its AI technology, including: the uncertainties related to market conditions and the completion of the offering on the anticipated terms or at all and such other factors and those additional risks and uncertainties discussed under the heading “Risk Factors” in the Form 10-K filed by the Company with the Securities and Exchange Commission (the “SEC”) on October 11, 2023 and the other documents filed, or to be filed, by the Company with the SEC. Additional information concerning these and other factors that may impact the operations and projections discussed herein can be found in the reports that the Company has filed and will file from time to time with the SEC. These SEC filings are available publicly on the SEC’s website at www.sec.gov. Should one or more of the risks or uncertainties described in this press release materialize or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Except as otherwise required by applicable law, the Company disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release.
Source: Presto Automation, Inc
Contact
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investor@presto.com
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