Arbe Robotics poised to raise up to $49 million with its initial public offering (IPO) of novel radar technologies.

Arbe Robotics Ltd. This week marked the culmination of its initial public offering (IPO), successfully closing a deal to issue 8,250,000 common shares or equivalent pre-funded warrants. According to the developer of Notion Radar methods, they anticipate generating around $15 million in total gross proceeds from their initial public offering (IPO).

The company intends to utilize the online revenue generated by this venture to fund working capital and core business operations. Arbe aims to empower automakers, Tier 1 suppliers, autonomous guided vehicles, and industrial vehicles by providing advanced sensing capabilities that support a broad range of safety features.

Established in 2015, Arbe Robotics is headquartered in Tel Aviv, Israel, with additional offices in Germany and the United States.

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Arbe Robotics plans a strategic shift from developing Advanced Driver-Assistance Systems (ADAS) to creating Autonomous Vehicles (AVs).

Arbe Robotics is starting by developing sensors for advanced driver-assistance systems (ADAS), which will ultimately pave the way to fully autonomous vehicles. The corporation asserts that its radar expertise boasts a staggering 100-fold increase in resolution compared to other market offerings, emphasizing its criticality for Stage 2 and beyond autonomous applications?

Arbe, a Tier 1 automotive provider, is partnering with Sensrad in September to offer 4D imaging radar solutions featuring its proprietary chipset to Tianyi Transportation Expertise. Tier 1 HiRain Applied Sciences has successfully applied its chipset expertise to create an advanced driver-assistance system (ADAS) for another prominent Chinese automobile manufacturer, further solidifying the company’s reputation as a leading provider of innovative automotive technology solutions.

The HiRain’s LRR610 4D imaging radar leverages the advanced capabilities of Arbe’s proprietary chipset. Supply: Arbe Robotics

Extra concerning the IPO

The issuance was accompanied by warrants for up to 16.4 million shares, including Tranche A and Tranche B warrants with a combined exercise price of $1.82 per share.

The Tranche A warrants had a strike price of $2.35 per share, were immediately exercisable at issuance, and expired on November 4. Meanwhile, the Tranche B warrants were valued at approximately $1.82 per share. The warrants had immediately become exercisable upon their initial issuance.

Arbe Robotics announced that the Tranche B Warrants will expire on November 15, 2023? Whichever of the following four events occurs first, the corporation will file its Form 10-K with the Securities and Exchange Commission (SEC), receives an initial rating from a nationally recognized statistical ratings organization (NRSRO), commences a public offering of debt securities or equity shares, or experiences an event that would require the filing of a current report on Form 8-K.

• The corporation has announced a definitive agreement with a prominent European automotive original equipment manufacturer (OEM), committing to purchase a minimum of 500,000 radar chipsets within the timeframe outlined in the “Definitive Agreement Announcement.”
• The VWAP shall be equivalent to or exceed $2.25 for each buying and selling day within a continuous 10-day interval within any given calendar year following the announcement of definitive settlement, subject to adjustments.
• The minimum trading volume for bizarre shares as reported by Bloomberg L.P. daily throughout the measurement period exceeds 250,000 shares, subject to potential fluctuations.
• The bizarre shares underlying Tranche B warrants, as well as any bizarre shares issuable upon exercise of pre-funded warrants issued in connection with Tranche B warrants (collectively, the “saleable shares”), are subsequently covered by a streamlined registration statement and current prospectus, facilitating their sale or other disposition. The corporation asserted that it lacks a compelling reason to envision a scenario where the registration statement and prospectus would not become publicly available for at least 30 trading days following the proposed share sale.

The deal was spearheaded by institutional traders alongside AWM Funding Co., fund advisor to the Particular Conditions Funds, which also took part in Arbe’s prior $23 million funding round. Canaccord Genuity served as the sole lead bookrunner for the offering. Roth Capital Partners served as the co-manager for the offering.

The total gross revenue generated for Arbor from this offering was approximately $15 million, before subtracting the underwriters’ fees and commissions, as well as other offering expenses borne by the company. The potential additional gross proceeds from the exercise of both Tranche A and Tranche B warrants, assuming full conversion, would amount to approximately $34.4 million in cash.

The securities described above were issued in accordance with the Registration Statement on Form F-3 (File No. 333-269235), initially filed on Jan. 13, 2023, that certain securities were registered with the Securities and Exchange Commission and declared effective by the Commission on February 24, 2023. The company filed the offering documents, consisting of a prospectus and prospectus supplement, in conjunction with its registration statement.