Serve Robotics Inc. Announces Pricing of $40 Million Public Offering and Uplisting to the Nasdaq Capital Market Under New Ticker "SERV"
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Insights
With Serve Robotics Inc.'s move to raise capital through a public offering of shares, both the pricing and scale of the issuance are critical factors for investors to consider. The offered price of $4.00 per share has been set based on market conditions and the company's valuation. One key aspect of this offering is the participation of Postmates, a strategic partner, which signals a vote of confidence in Serve's potential. However, investors should assess whether the dilutive effect of the new shares might impact their earnings per share.
The additional 15% over-allotment option granted to Aegis Capital could lead to further dilution, but also provides a buffer for additional capital, which might be favorable if the stock performs well post-listing. The uplisting to the Nasdaq Capital Market is an important milestone that could increase the stock's visibility and liquidity, potentially attracting more institutional investors.
Prospective and current investors should weigh the use of the proceeds against the company's growth strategies and the potential return on investment. It is essential to evaluate Serve's financials, market position and the competitive landscape of autonomous delivery services to make an informed decision.
Examining the autonomous delivery market, Serve Robotics Inc.'s uplisting and capital raise position it to capitalize on growth trends in the sector. The infusion of $40 million, potentially rising to $46 million with the over-allotment option, underwrites technology development, market expansion and may enhance its competitive stance. The participation of Uber's subsidiary, Postmates, not only brings capital but could also mean strategic collaborations that might enhance Serve's market reach and operational synergies.
Yet, the industry faces challenges such as regulatory hurdles, technological complexities and consumer acceptance. Investors should look at Serve's approach to these challenges and its ability to scale operations sustainably. As the company grows, one should monitor how effectively it utilizes the raised funds to navigate through these industry-specific barriers.
In addition, Serve has granted Aegis Capital Corp. ("Aegis") a 45-day option to purchase up to 1,500,000 additional shares of common stock, equal to
Serve plans to use net proceeds from the offering to fund research and development of the next generations of Serve's robots, manufacturing activities, geographic expansion, and for working capital and other general corporate purposes.
Serve also announced that, in connection with the offering, its common stock has been approved for listing and will begin trading on the Nasdaq Capital Market under the symbol "SERV" on April 18, 2024. Serve was previously listed on the OTCQB® Venture Market under the ticker symbol "SBOT" and will no longer trade on that market."
Aegis Capital Corp. is acting as the sole book-running manager for the offering. Orrick, Herrington & Sutcliffe LLP is acting as counsel to the Company. Sichenzia Ross Ference Carmel LLP is acting as counsel to Aegis Capital Corp.
A registration statement on Form S-1 (No. 333-277809) relating to the securities being sold in this offering was declared effective by the Securities and Exchange Commission (the "SEC") on April 17, 2024. The offering is being made only by means of a prospectus. Copies of the final prospectus may be obtained, when available, on the SEC's website, www.sec.gov, or by contacting Aegis Capital Corp., Attention: Syndicate Department, 1345 Avenue of the
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Serve Robotics Inc.
Backed by Uber and NVIDIA, Serve Robotics develops advanced, AI-powered, low-emissions sidewalk delivery robots that endeavor to make delivery sustainable and economical. Spun off from Uber in 2021 as an independent company, Serve has completed tens of thousands of deliveries for enterprise partners such as Uber Eats and 7-Eleven. The company has scalable multi-year contracts, including a signed agreement to deploy up to 2,000 delivery robots on the Uber Eats platform across multiple
For further information about Serve Robotics (NASDAQ:SERV), please visit www.serverobotics.com or follow us on social media via X (Twitter), Instagram, or LinkedIn @serverobotics.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Serve intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Exchange Act. These forward-looking statements can be about future events, including statements regarding Serve's intentions, objectives, plans, expectations, assumptions and beliefs about future events, including Serve's expectations with respect to the financial and operating performance of its business, its capital position, and future growth. The words "anticipate", "believe", "expect", "project", "predict", "will", "forecast", "estimate", "likely", "intend", "outlook", "should", "could", "may", "target", "plan" and other similar expressions can generally be used to identify forward-looking statements. Indications of, and guidance or outlook on, future earnings or financial position or performance are also forward-looking statements. Any forward-looking statements in this press release are based on management's current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. Risks that contribute to the uncertain nature of the forward-looking statements include those risks and uncertainties set forth in Serve's Annual Report on Form 10-K for the year ended December 31, 2023, filed with the United States Securities and Exchange Commission (the "SEC") and in its subsequent filings filed with the SEC. All forward-looking statements contained in this press release speak only as of the date on which they were made. Serve undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
Media:
Aduke Thelwell
Head of Investor Relations & Communications
Serve Robotics Inc.
aduke.thelwell@serverobotics.com
347-464-8510
Investors:
CORE IR
investor.relations@serverobotics.com
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SOURCE Serve Robotics Inc.
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