Richtech Robotics Announces Pricing of Upsized $21 Million Public Offering

Rhea-AI Summary

Richtech Robotics Inc. (Nasdaq: RR), an AI-driven service robot provider, has announced the pricing of an upsized $21 million public offering. The offering includes 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 have an exercise price of $1.35 per share, are immediately exercisable, and expire in five years. The offering is expected to close around September 3, 2024. Rodman & Renshaw is the exclusive placement agent. Richtech Robotics plans to use the proceeds for working capital, product development, and inventory procurement, specifically for robotic hardware.

Positive

• Upsized public offering raising $21 million in gross proceeds
• Additional potential $21 million if all warrants are exercised
• Funds to be used for working capital, product development, and inventory procurement

Negative

• Potential dilution for existing shareholders due to new share issuance
• Warrants may create downward pressure on stock price if exercised

Financial Analyst

Richtech Robotics' $21 million public offering is a significant capital raise for the AI-driven service robotics company. The upsized offering, priced at $1.35 per share with accompanying warrants, indicates strong investor interest. This capital injection should bolster the company's working capital and fund product development, potentially accelerating growth in the competitive robotics market.

However, the dilutive effect of issuing 15,555,557 new shares could pressure existing shareholders. The warrant structure, if fully exercised, could bring in an additional $21 million, but also represents further potential dilution. Investors should closely monitor how efficiently Richtech deploys this capital to drive growth and achieve profitability in the rapidly evolving AI and robotics sector.

Tech Expert

Richtech Robotics' focus on AI-driven service robots positions them in a high-growth market. The $21 million raised will be important for product development and inventory procurement, potentially accelerating their technological advancements. This could lead to improved AI algorithms, enhanced robot functionalities and a wider range of applications across various industries.

The emphasis on robotic hardware procurement suggests a strategy to scale up production and deployment. This move could help Richtech compete more effectively against established players and startups in the service robotics space. However, success will depend on their ability to innovate and differentiate their offerings in a rapidly evolving tech landscape.

Market Research Analyst

The upsized public offering for Richtech Robotics reflects growing investor confidence in the AI and robotics sector. With the global service robotics market projected to grow at a CAGR of over 21% through 2028, Richtech is positioning itself to capitalize on this trend. The pricing at $1.35 per share suggests a balance between attracting investors and maximizing capital raised.

The inclusion of warrants with a five-year expiration provides a long-term upside potential for investors, aligning their interests with the company's growth. However, the success of this offering will ultimately be measured by Richtech's ability to translate this capital into market share gains and revenue growth in the competitive service robotics industry.

LAS VEGAS, Aug. 29, 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 pricing of an upsized 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), 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 will have an exercise price of $1.35 per share, will be exercisable immediately upon issuance and will expire on the five year anniversary of the initial issuance date. The closing of the offering is expected to occur on or about September 3, 2024, subject to the satisfaction of customary closing conditions.

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

The aggregate gross proceeds to the Company from the offering are expected to be 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 our product candidates, and the procurement of inventory, specifically for robotic hardware.

The securities described above are being 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 is being made only by means of a prospectus forming part of the effective registration statements relating to the offering. A preliminary prospectus relating to the offering has been filed with the SEC and a final prospectus relating to the offering will be filed with the SEC. Electronic copies of the final prospectus, when available, may be obtained on the SEC’s website at http://www.sec.gov and may also be obtained, when available, 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 completion of the offering, the satisfaction of customary closing conditions related to the offering and the anticipated use of proceeds therefrom.

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 conditions and the satisfaction of closing conditions related to the proposed public offering. 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

What is the size and price of Richtech Robotics' (RR) public offering?

Richtech Robotics (RR) priced an upsized $21 million public offering of 15,555,557 shares of Class B common stock (or equivalents) and warrants at $1.35 per share and accompanying warrant.

When is the expected closing date for Richtech Robotics' (RR) public offering?

The closing of Richtech Robotics' (RR) public offering is expected to occur on or about September 3, 2024, subject to customary closing conditions.

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, further development of product candidates, and procurement of inventory, specifically for robotic hardware.

What are the terms of the warrants in Richtech Robotics' (RR) public offering?

The warrants in Richtech Robotics' (RR) offering have an exercise price of $1.35 per share, are exercisable immediately upon issuance, and will expire five years from the initial issuance date.