Arbe Successfully Completes a $15.7 Million Private Placement Follow-on Offering of its Series A Convertible Bonds

Rhea-AI Summary

Arbe (Nasdaq: ARBE) completed a $15.7 million private placement as a follow-on to its Series A Convertible Bonds, bringing the total amount of Series A bonds held at the trustee to $24.3 million.

Bondholders approved amendments that extend the Series A maturity to December 31, 2026 and reduce the annual interest rate from 6.5% to 4.35% effective January 1, 2026. The newly issued bonds carry the same amended terms and, after registration, all Series A bonds will trade as a single series on the Tel Aviv Stock Exchange as of December 29, 2025.

Positive

• $15.7M private placement completed
• Series A escrow balance increased to $24.3M
• Interest rate reduced from 6.5% to 4.35% starting Jan 1, 2026

Negative

• Series A maturity extended to Dec 31, 2026, delaying final repayment
• Additional bonds added to outstanding Series A increase total convertible obligations held at trustee

Key Figures

Private placement size $15.7M Follow-on offering of Series A Convertible Bonds

Escrow total after deal $24.3M Total Series A Convertible Bonds held at trustee post follow-on

Original bond issuance ≈$30M Series A Convertible Bonds issued in June 2024

Released from escrow $21.5M Converted to ordinary shares in January 2025

Remaining escrow pre-deal $8.6M Series A Convertible Bonds still held in escrow before follow-on

Previous interest rate 6.5% Original annual interest on Series A Convertible Bonds

New interest rate 4.35% Reduced annual interest from January 1, 2026

Maturity date Dec 31, 2026 Extended maturity for Series A Convertible Bonds

Market Reality Check

$1.11 Last Close

Volume Volume 7,162,872 is 2.48x the 20-day average of 2,889,674, indicating elevated interest ahead of this financing update. high

Technical Shares at $1.13 are trading below the $1.50 200-day MA and 77.8% under the $5.09 52-week high, despite being 32.94% above the $0.85 52-week low.

Peers on Argus

ARBE showed a strong +9.71% move with elevated volume, while close peers were mixed: REKR (-2.61%), AISP (-0.36%), HPAI (0%), ZENA (+4.14%), and BKKT (+0.68%). This points to stock-specific dynamics rather than a broad sector shift.

Common Catalyst ZENA reported M&A-driven expansion, but no widespread, shared catalyst appears across the peer group today.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 29	Autonomous driving win	Positive	+9.7%	Major Chinese state-owned automaker chose Arbe radar for L4 vehicle program.
Dec 08	Bond terms proposal	Negative	-7.9%	Proposed bond milestone extension and rate cut, citing delayed European OEM award.
Nov 18	Conference participation	Neutral	-1.5%	Announcement of participation in ROTH technology conference and investor meetings.
Nov 17	Q3 2025 earnings	Negative	-10.3%	Reported low revenue with substantial operating and net losses and negative EBITDA.
Oct 30	Earnings call notice	Neutral	-3.1%	Scheduled Q3 2025 results release and conference call logistics announcement.

Pattern Detected

Recent news often triggered sizable moves, with positive commercial wins and bond amendments aligning with strong up or down reactions, while neutral conference/housekeeping items saw smaller, sometimes divergent price changes.

Recent Company History

Over the last few months, Arbe combined strategic commercial wins with balance sheet actions. A China-based state-owned automaker selected its radar for an L4 program, driving a +9.71% move on Dec 29, 2025. Earlier, Arbe proposed extending Series A convertible bond milestones and cutting interest, which coincided with a -7.89% reaction on Dec 8, 2025. Q3 2025 results on Nov 17, 2025 highlighted modest revenue of $0.3M and significant losses, with a -10.34% move. Today’s private placement and bond expansion fit this pattern of using capital markets tools alongside strategic customer progress.

Market Pulse Summary

This announcement expands Arbe’s Series A Convertible Bonds through a $15.7M private placement, lifting the amount held at the trustee to $24.3M, while bondholders approved extending maturity to Dec 31, 2026 and cutting interest to 4.35%. In context of earlier proposals to amend these bonds and recent reports of low revenue with sizable losses, this step supports financial flexibility. Investors may watch how additional resources translate into commercial progress in autonomous driving programs and whether further conversions affect the equity base.

Key Terms

private placement financial

"today announced the successful completion of a $15.7 million private placement, through a follow-on offering"

A private placement is a way for companies to raise money by selling securities directly to a small group of investors instead of through a public offering. This process is often quicker and less regulated, making it similar to offering a special, exclusive investment opportunity to select individuals or institutions. For investors, it can provide access to unique investment options that are not available on public markets.

convertible bonds financial

"expansion of its existing outstanding Series A Convertible Bonds."

A convertible bond is a loan a company issues that pays regular interest and can be exchanged for a fixed number of the company’s shares under specified terms. It matters to investors because it combines the steady income and lower downside risk of a bond with the upside potential of owning stock—like holding a ticket that can be cashed for equity if the share price rises—affecting returns, risk, and shareholder dilution.

trustee financial

"Total of $24.3 Million from Arbe's Series A Convertible Bonds Now Held at the Trustee"

A trustee is a person or institution legally appointed to hold and manage assets or enforce an agreement on behalf of other people (beneficiaries). Think of a trustee as a neutral referee or custodian who must act in the beneficiaries’ best interests, follow the trust or contract rules, and handle distributions, recordkeeping and enforcement. Investors care because a trustworthy trustee protects their rights, ensures promised payments or remedies are delivered, and can influence recoveries if things go wrong.

maturity date financial

"approved an extension to the Series A Convertible Bonds' maturity date to December 31, 2026"

The maturity date is the specific day when a loan, bond, or investment reaches its full term and the borrower must repay the borrowed amount in full. It is important for investors because it indicates when they will receive their initial money back and can plan their future financial steps accordingly. Think of it as the due date for a loan or the day a gift card or coupon expires.

AI-generated analysis. Not financial advice.

Total of $24.3 Million from Arbe's Series A Convertible Bonds Now Held at the Trustee

TEL AVIV, Israel, Dec. 30, 2025 /PRNewswire/ -- Arbe Robotics Ltd. (Nasdaq: ARBE) (TASE: ARBE), a global leader in perception radar solutions, today announced the successful completion of a $15.7 million private placement, through a follow-on offering as an expansion of its existing outstanding Series A Convertible Bonds.

As previously reported, in June 2024 Arbe announced the issuance of approximately $30 million in Series A Convertible Bonds. In January 2025, $21.5 million of this amount was released from escrow following the conversion of convertible bonds to ordinary shares of the Company, at the request of bondholders. The remaining balance of $8.6 million continues to be held in escrow. Following the completion of the follow-on offering announced today, the amount held in escrow under this series increased to $24.3 million.

The Company issued a 6-K on December 22, 2025 reporting that its bondholders approved an extension to the Series A Convertible Bonds' maturity date to December 31, 2026, a reduction of the annual interest rate from 6.5% to 4.35% commencing January 1, 2026, as well as other amendments. The additional bonds issued as part of this follow-on offering have the same terms as all of Arbe's existing outstanding Series A Convertible Bonds, including the lower interest rate. Following their registration for trading on the Tel Aviv Stock Exchange on December 29, 2025, all Series A Convertible Bonds will trade as a single series.

"We are very pleased with the successful expansion of our Series A Convertible Bonds, which reflects the strong support we continue to see from our investors," said Kobi Marenko, Chief Executive Officer of Arbe. "The successful conclusion of the expansion process, which we launched following requests from our bondholders, enhances our financial flexibility and provides additional resources to support the execution of our long-term growth strategy. We believe this positive outcome underscores investor confidence in Arbe's technology and long-term vision."

About Arbe

Arbe (Nasdaq: ARBE), a global leader in ultra-high-resolution radar solutions, is driving a radar revolution. Its cutting-edge radar chipset delivers up to 100 times more detail than other radar systems, empowering automakers and radar Tier-1s to develop truly safe driving systems that scale from ADAS to hands-free, eyes-off capabilities and up to full vehicle autonomy. Arbe's technology addresses the most critical use cases by delivering real-time, 4-dimensional imaging that enables the perception stack with information such as precise mapping of drivable free space in highway and urban environments across all weather and lighting conditions. With its transformative impact across passenger, commercial, and industrial vehicle segments, as well as other advanced safety applications, Arbe is redefining the role of radar in next-generation mobility.

Headquartered in Tel Aviv, Israel, the company also operates offices in the United States, Germany, and China. For more information, visit https://arberobotics.com/ 

Cautionary Note Regarding Forward-Looking Statements

This press release contains, and the conference call described in this press release will contain, "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. The words "expect," "believe," "estimate," "intend," "plan," "anticipate," "may," "should," "strategy," "future," "will," "project," "potential" and similar expressions indicate forward-looking statements. 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. These risks and uncertainties include whether and when we receive secure the orders we anticipate and the extent of any orders we receive; our ability to meet expectations with respect to our financial guidance and outlook; the timing and completion of key product and project orders and milestones; expectations regarding our collaborations and business with third parties; the effect of tariffs and trade policies of the United States, China and other countries, whether announced or implemented; the effect on the Israeli economy generally and on the Company's business resulting from the terrorism and the hostilities in Israel and with its neighboring countries including the effects of the continuing war with Hamas in Gaza and any intensification of hostilities with others, including Iran and Hezbollah, and the effect of the call-up of a significant portion of its working population, including the Company's employees; the effect of any potential boycott both of Israeli products and business and of stocks in Israeli companies; the effect of any downgrading of the Israeli economy and the effect of changes in the exchange rate between the US dollar and the Israeli shekel; and the risk and uncertainties described in "Cautionary Note Regarding Forward-Looking Statements," "Item 3. Key Information – D. Risk Factors" and "Item 5. Operating and Financial Review and Prospects" and in the Company's Annual Report on Form 20-F for the year ended December 31, 2024, which was filed with the Securities and Exchange Commission (the "SEC") on March 28, 2025, as well as other documents filed by the Company with the SEC. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements relate only to the date they were made, and the Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made except as required by law or applicable regulation.

Information contained on, or that can be accessed through, the Company's website or any other website or any social media is expressly not incorporated by reference into and is not a part of this press release.

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SOURCE Arbe

FAQ

What did Arbe (ARBE) announce on December 30, 2025 about Series A convertible bonds?

Arbe completed a $15.7M follow-on private placement, raising the Series A escrow to $24.3M and amending terms.

How did the Series A interest rate for ARBE change and when does it take effect?

The annual interest rate was reduced from 6.5% to 4.35%, effective January 1, 2026.

When is the new maturity date for Arbe's Series A convertible bonds (ARBE)?

Bondholders approved an extension of the Series A maturity to December 31, 2026.

How much total Series A convertible bonds does Arbe (ARBE) now have held at the trustee?

Following the follow-on offering, the amount held in escrow under Series A is $24.3 million.

Will the new Series A convertible bonds for ARBE trade on an exchange?

Yes; after registration on December 29, 2025, all Series A convertible bonds will trade as a single series on the Tel Aviv Stock Exchange.

Do the additional Series A bonds issued by Arbe (ARBE) carry different terms?

No; the additional bonds were issued on the same terms as the existing amended Series A convertible bonds.