Peraso Announces Exercise of Warrants for $2.9 Million in Gross Proceeds
Rhea-AI Summary
Peraso announced the exercise of Series B warrants to purchase 2,246,030 shares of common stock at a reduced price of $1.30 per share, expecting to raise $2.9 million in gross proceeds. In exchange, the company will issue new unregistered Series C and D warrants to purchase up to 2,246,030 shares each at $1.61 per share. The Series C warrants have a 6-month term while Series D warrants extend to 5 years. Additionally, Peraso reduced the exercise price to $1.30 for non-participating warrant holders until November 8, 2024. The proceeds will be used for working capital and general corporate purposes.
Positive
- Immediate capital raise of $2.9 million through warrant exercise
- New warrants priced at $1.61, representing a 24% premium over exercise price
Negative
- Dilutive effect from potential exercise of additional 4.49 million new warrants
- Reduced warrant exercise price from original terms indicates potential financing pressure
News Market Reaction – PRSO
In the trading session that priced this news, PRSO declined 24.22%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
SAN JOSE, CA / ACCESSWIRE / November 5, 2024 / Peraso Inc. (NASDAQ:PRSO) ("Peraso" or the "Company"), a pioneer in mmWave wireless technology solutions, announced today the entry into definitive agreements for the immediate exercise of certain outstanding Series B warrants to purchase up to an aggregate of 2,246,030 shares of common stock, issued by Peraso in February 2024 (the "Existing Warrants"), at a reduced exercise price of
Ladenburg Thalmann & Co. Inc. is acting as the exclusive placement agent for the offering.
In consideration for the immediate exercise of the Existing Warrants for cash, Peraso will issue new unregistered Series C warrants to purchase up to 2,246,030 shares of common stock (the "Series C Warrants") and new unregistered Series D warrants to purchase up to 2,246,030 shares of common stock (the "Series D Warrants," and collectively with the Series C Warrants, the "New Warrants"). The New Warrants will have an exercise price of
In connection with the transaction, Peraso also reduced the exercise price of the Existing Warrants to purchase an aggregate of 1,728,490 shares of common stock for all holders not participating in the transaction to
The gross proceeds to Peraso from the exercise of the Existing Warrants are expected to be approximately
The New Warrants described above were offered in a private placement pursuant to an applicable exemption from the registration requirements of the Securities Act of 1933, as amended (the "1933 Act"), and, along with the shares of common stock issuable upon exercise, have not been registered under the 1933 Act, and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission ("SEC") or an applicable exemption from such registration requirements. Peraso has agreed to file a registration statement with the SEC covering the resale of the shares of common stock issuable upon exercise of the New Warrants.
Additional information regarding the offering will be available in a Form 8-K to be filed with the SEC.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in this offering, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About Peraso Inc.
Peraso Inc. (NASDAQ:PRSO) is a pioneer in high performance 60 GHz unlicensed and 5G mmWave wireless technology, offering chipsets, modules, software and IP. Peraso supports a variety of applications, including fixed wireless access, military, immersive video and factory automation. In addition, Peraso's solutions for data and telecom networks focus on Accelerating Data Intelligence and Multi-Access Edge Computing, providing end-to-end solutions from the edge to the centralized core and into the cloud. For additional information, please visit www.perasoinc.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and Private Securities Litigation Reform Act, as amended, which are intended to be covered by the "safe harbor" created by those sections. All statements in this release that are not based on historical fact are "forward-looking statements." These statements may be identified by words such as "estimates," "anticipates," "projects," "plans," "strategy," "goal," or "planned," "seeks," "may," "might," "will," "expects," "intends," "believes," "should," and similar expressions, or the negative versions thereof, and which also may be identified by their context. Such statements are based on information available to the Company as of the date of this press release and are subject to numerous important factors, risks and uncertainties that may cause actual events or results to differ materially from the Company's current expectations, including market conditions, risks associated with the cash requirements of Peraso's business and other risks detailed from time to time in the Company's filings with the SEC, and represent views only as of the date they are made and should not be relied upon as representing views as of any subsequent date. Peraso undertakes no obligation to update publicly any forward-looking statement for any reason, except as required by law, even as new information becomes available or other events occur in the future.
Investor Relations Contacts:
Shelton Group
Brett L. Perry | Leanne K. Sievers
P: 214-272-0070| 949-224-3874
E: sheltonir@sheltongroup.com
Peraso Company Contact
James Sullivan
CFO
jsullivan@perasoinc.com
Contact Information
Beverly Twing
Shelton IR
btwing@sheltongroup.com
972-239-5119
SOURCE: Peraso Inc.
View the original press release on accesswire.com