Richtech Robotics Announces Closing of $21 Million Public Offering

Rhea-AI Summary

Richtech Robotics Inc. (Nasdaq: RR) has successfully closed its previously announced public offering, raising approximately $21 million in gross proceeds. The offering included 15,555,557 shares of Class B common stock (or equivalents) and warrants to purchase an equal number of shares, priced at $1.35 per share and accompanying warrant. The warrants, exercisable immediately, have a five-year expiration and could potentially bring in an additional $21 million if fully exercised.

Rodman & Renshaw served as the exclusive placement agent. Richtech Robotics plans to use the net proceeds for working capital, general corporate purposes, product development, and inventory procurement, specifically for robotic hardware. The offering was made pursuant to effective registration statements filed with the SEC.

Positive

• Successful closing of $21 million public offering
• Potential for additional $21 million from warrant exercise
• Funds allocated for product development and inventory procurement
• Warrants exercisable immediately with a five-year expiration

Negative

• Potential dilution of existing shareholders due to new share issuance
• No assurance that warrants will be exercised, possibly limiting additional capital

Financial Analyst

Richtech Robotics' $21 million public offering is a significant capital raise for the AI-driven service robotics company. The offering structure, combining shares and warrants at $1.35 each, provides immediate funding and potential for additional capital. However, the dilutive effect on existing shareholders is notable, with 15,555,557 new shares issued. The warrant exercise price at par suggests cautious investor sentiment. The company's focus on working capital and product development indicates a growth-oriented strategy, but also hints at potential cash flow challenges. Investors should monitor the company's ability to convert this capital into tangible market advantages and revenue growth in the competitive robotics sector.

Tech Expert

Richtech Robotics' capital injection is timely for the rapidly evolving AI and robotics industry. The allocation of funds towards product development and inventory procurement is important in this fast-paced sector. However, the company faces significant challenges:

• Intense competition from established tech giants and well-funded startups
• Rapid technological advancements requiring continuous R&D investment
• Potential regulatory hurdles as AI-driven robots become more prevalent

The success of this funding round will largely depend on Richtech's ability to innovate and differentiate its AI-driven service robots in a crowded market. Investors should closely monitor the company's technological progress and market penetration in the coming months.

Market Research Analyst

The $21 million raise by Richtech Robotics reflects growing investor interest in the AI-driven service robot market. However, the offering price of $1.35 per share suggests cautious valuation. The global service robotics market is projected to grow at a CAGR of 21.2% from 2021 to 2028, presenting significant opportunities. Key factors to watch include:

• Richtech's market share gains in key sectors like hospitality and healthcare
• Adoption rates of AI-driven robots in various industries
• The company's ability to scale production and meet potential demand

While the funding provides Richtech with resources to capitalize on market growth, investors should be aware of the highly competitive landscape and the company's need to establish a strong market position quickly.

LAS VEGAS, Sept. 03, 2024 (GLOBE NEWSWIRE) -- Richtech Robotics Inc. (Nasdaq: RR), (“Richtech Robotics” or the “Company”), a Nevada-based provider of AI-driven service robots, today announced the closing of its previously announced public offering of an aggregate of 15,555,557 shares of its Class B common stock (or Class B common stock equivalents in lieu thereof) and warrants to purchase up to 15,555,557 shares of Class B common stock (the “Warrants”), at a combined public offering price of $1.35 per share (or per Class B common stock equivalent in lieu thereof) and accompanying Warrant. The Warrants have an exercise price of $1.35 per share, are exercisable immediately upon issuance and expire on the five-year anniversary of the initial issuance date.

Rodman & Renshaw LLC acted as the exclusive placement agent for the offering.

The aggregate gross proceeds to the Company from the offering were approximately $21 million before deducting the placement agent’s fees and other offering expenses payable by the Company. The potential additional gross proceeds to the Company from the Warrants, if fully exercised on a cash basis, will be approximately $21 million. No assurance can be given that any of the Warrants will be exercised. The Company intends to use the net proceeds from this offering for working capital, general corporate purposes, including the further development of its product candidates, and the procurement of inventory, specifically for robotic hardware.

The securities described above were offered pursuant to a registration statement on Form S-1 (File No. 333-281789) (the “Registration Statement”), which was declared effective by the Securities and Exchange Commission (the “SEC”) on August 29, 2024, and an additional registration statement on Form S-1 filed pursuant to Rule 462(b) under the Securities Act of 1933, as amended, which became automatically effective on August 29, 2024. The offering was made only by means of a prospectus forming part of the effective registration statements relating to the offering. A final prospectus relating to the offering has been filed with the SEC. Electronic copies of the final prospectus may be obtained on the SEC’s website at http://www.sec.gov and may also be obtained by contacting Rodman & Renshaw LLC at 600 Lexington Avenue, 32nd Floor, New York, NY 10022, by telephone at (212) 540-4414, or by email at info@rodm.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 Richtech Robotics

Richtech Robotics is a provider of collaborative robotic solutions specializing in the service industry, including the hospitality and healthcare sectors. Our mission is to transform the service industry through collaborative robotic solutions that enhance the customer experience and empower businesses to achieve more. By seamlessly integrating cutting-edge automation, we aspire to create a landscape of enhanced interactions, efficiency, and innovation, propelling organizations toward unparalleled levels of excellence and satisfaction. Learn more at www.RichtechRobotics.com and connect with us on X (Twitter), LinkedIn, and YouTube.

Forward Looking Statements

Certain statements in this press release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words such as “anticipate,” “believe,” “forecast,” “estimate,” “expect,” and “intend,” among others. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Such forward-looking statements include, but are not limited to, statements regarding the anticipated use of proceeds from the offering.

These forward-looking statements are based on Richtech Robotics’ current expectations and actual results could differ materially. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements include, among others, risks and uncertainties related to market and other conditions. Investors should read the risk factors set forth in Richtech Robotics’ Annual Report on Form 10-K/A, filed with the SEC on March 27, 2024, the Registration Statement and periodic reports filed with the SEC on or after the date thereof. All of Richtech Robotics’ forward-looking statements are expressly qualified by all such risk factors and other cautionary statements. The information set forth herein speaks only as of the date thereof. New risks and uncertainties arise over time, and it is not possible for Richtech Robotic to predict those events or how they may affect Richtech Robotic. If a change to the events and circumstances reflected in Richtech Robotics’ forward-looking statements occurs, Richtech Robotics’ business, financial condition and operating results may vary materially from those expressed in Richtech Robotics’ forward-looking statements.

Readers are cautioned not to put undue reliance on forward-looking statements, and Richtech Robotic assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Investors:
CORE IR
Matt Blazei
ir@richtechrobotics.com

Media:
Timothy Tanksley
Director of Marketing
Richtech Robotics, Inc
press@richtechrobotics.com
702-534-0050

FAQ

How much did Richtech Robotics (RR) raise in its recent public offering?

Richtech Robotics (RR) raised approximately $21 million in gross proceeds from its recent public offering.

What was the price per share in Richtech Robotics' (RR) public offering?

The combined public offering price was $1.35 per share of Class B common stock (or equivalent) and accompanying warrant.

How many shares and warrants did Richtech Robotics (RR) offer in its public offering?

Richtech Robotics (RR) offered 15,555,557 shares of Class B common stock (or equivalents) and warrants to purchase up to 15,555,557 shares.

What are the terms of the warrants issued by Richtech Robotics (RR)?

The warrants have an exercise price of $1.35 per share, are exercisable immediately upon issuance, and expire five years from the initial issuance date.

How does Richtech Robotics (RR) plan to use the proceeds from the offering?

Richtech Robotics (RR) intends to use the net proceeds for working capital, general corporate purposes, product development, and inventory procurement, specifically for robotic hardware.