Business
Serve Robotics Announces Pricing of Private Placement & Warrant Exercise for aggregate gross proceeds of $20 Million
SAN FRANCISCO, Aug. 27, 2024 /PRNewswire/ -- Serve Robotics Inc. ("Serve" or "Company") (Nasdaq: SERV), a leading autonomous sidewalk delivery company,
About this update from Serve Robotics Inc.
[{"type":"text","content":"SAN FRANCISCO, Aug. 27, 2024 /PRNewswire/ -- Serve Robotics Inc. (\"Serve\" or \"Company\") (Nasdaq: SERV), a leading autonomous sidewalk delivery company, announced today that the Company has entered into a securities purchase agreement expected to result in gross proceeds of approximately $20.0 million to the Company. The transaction is expected to close on or about August 28, 2024, subject to satisfaction of customary closing conditions.\n\nThe Company today announced that it has entered into a securities purchase agreement with a single institutional investor for the purchase and sale, in a private placement, of pre-funded warrants to purchase 555,555 shares of the Company's common stock (the \"Common Stock\"), together with a warrant to purchase up to an aggregate of 555,555 shares of Common Stock at an exercise price of $10.00 per share (the \"Common Warrants\"). Each pre-funded warrant to purchase one share of Common Stock together with one Common Warrant to purchase one share of Common Stock is being sold at a purchase price of $9.00. The Common Warrants will be exercisable upon issuance and will expire five and a half years from the date of issuance.\nIn addition, the Company agreed with a single institutional investor to exercise certain outstanding warrants to purchase an aggregate of 2,500,000 shares of Common Stock (the \"Existing Warrants\"). The Existing Warrants are purchased at their exercise price of $6.00 per share. In consideration for the immediate exercise in full of the Existing Warrants for gross cash proceeds of approximately $15.0 million, the exercising holder received in a private placement new unregistered warrants (the \"New Warrants\") to purchase up to an aggregate of 2,200,000 shares of common stock with an exercise price of $10.00 per share. The New Warrants will be exercisable upon issuance and will expire five and a half years from the date of issuance.\nThe total gross proceeds are expected to be approximately $20.0 million, excluding any proceeds that may be received upon the exercise of the Common Warrants and before deducting placement agent fees and other expenses payable by the company.\nAegis Capital Corp. is acting as the exclusive placement agent for the transaction. Orrick, Herrington & Sutcliffe LLP served as counsel to the Company and Sichenzia Ross Ference Carmel LLP served as cou...