TEL AVIV - Arbe Robotics Ltd. (NASDAQ: NASDAQ:ARBE), a company specializing in Perception Radar Solutions, disclosed today its plan to conduct an underwritten public offering of its ordinary shares, along with Tranche A and Tranche B Warrants to purchase additional shares. The completion and specifics of the offering, including its size and terms, are contingent on market conditions and cannot be guaranteed.
Canaccord Genuity is the sole bookrunner for the offering. Arbe has expressed intentions to allocate the net proceeds from the offering towards working capital and other general corporate purposes.
The securities in question will be offered under a previously filed and effective registration statement with the U.S. Securities and Exchange Commission (SEC). A preliminary prospectus supplement and accompanying prospectus have been filed with the SEC and are accessible through their website.
Arbe, headquartered in Tel Aviv with international offices, is recognized for its radar technology, which is claimed to be significantly more detailed than competing products on the market. The company's technology is deemed essential for advanced driver-assistance systems and the progression towards fully autonomous driving.
This press release includes forward-looking statements as defined by federal securities laws, which involve projections and statements about future events based on current expectations and assumptions. However, these statements are subject to various risks and uncertainties, and actual results could differ materially.
The company's forward-looking statements also reflect potential impacts from regional conflicts, economic conditions, and currency exchange rates. Arbe does not commit to updating any forward-looking statements post their issuance unless required by law.
This article is based on a press release statement from Arbe Robotics Ltd.
In other recent news, Arbe Robotics Ltd. has made significant strides in its radar technology development. The company announced a collaboration with HiRain Technologies to develop an Advanced Driver Assistance Systems (ADAS) for a Chinese automaker, with production anticipated for Q4 2025. Simultaneously, Arbe secured a 7 million euro deal with Tianyi Transportation Technology through Sensrad, set to commence in Q3 2024.
Additionally, during their Q2 2024 earnings call, Arbe disclosed the acquisition of two major customers, a top 10 global OEM and a well-known European truck manufacturer. Despite a net loss of $11.8 million for Q2 2024, the company anticipates revenue from these deals by late 2025 or early 2026. Arbe's Q2 2024 financials showed a revenue of $0.4 million, a gross margin of -9.5%, and operating expenses of $11.6 million.
Arbe's 2024 guidance includes achieving four design-ins with automakers and projecting an adjusted EBITDA loss between $30 million to $36 million. These recent developments highlight Arbe's active pursuit of securing four design wins with leading global automakers. The company's radar technology is recognized for its affordability and power efficiency, with key markets identified in China, Japan, and Europe for the next year.
InvestingPro Insights
Arbe Robotics Ltd.'s decision to conduct a public offering comes at a time when the company faces significant financial challenges, as revealed by recent InvestingPro data. With a market capitalization of $149.28 million, Arbe is operating in a precarious financial position that may explain its need for additional capital.
InvestingPro Tips highlight that Arbe is "quickly burning through cash" and "suffers from weak gross profit margins." These factors likely contribute to the company's decision to raise funds through a public offering. The company's financial health is further underscored by its negative gross profit of $0.38 million and an alarming operating income margin of -3501.02% for the last twelve months as of Q2 2024.
Despite these challenges, Arbe has shown a quarterly revenue growth of 41.52% in Q2 2024, indicating some positive momentum. However, this growth comes against a backdrop of overall revenue decline, with a -33.04% revenue growth rate for the last twelve months.
Investors considering participating in the offering should note that Arbe is currently trading at a high revenue valuation multiple, according to InvestingPro Tips. This suggests that the market may be pricing in significant future growth expectations, which could be challenging to meet given the company's current financial performance.
For a more comprehensive analysis, InvestingPro offers 7 additional tips for Arbe Robotics Ltd., providing deeper insights into the company's financial position and market outlook.
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