Richtech Robotics Announces Closing of Underwriters' Over-Allotment Option in Connection With Its Initial Public Offering

Rhea-AI Summary

Richtech Robotics Inc. (Nasdaq: RR) announced the issuance of an additional 42,563 shares of the Company’s Class B common stock at $5.00 per share, resulting in gross proceeds of $212,815. The total proceeds of the initial public offering, including the exercise of the over-allotment option, were $10,712,815. The Company’s Class B common stock is listed on the Nasdaq Capital Market under the ticker symbol “RR.”

Financial Analyst

The additional issuance of 42,563 shares by Richtech Robotics Inc. at $5.00 per share is a strategic move that capitalizes on the underwriters' over-allotment option, a common practice in initial public offerings (IPOs) to manage excess demand and stabilize the stock post-IPO. The additional capital of $212,815, although relatively small in comparison to the total proceeds of $10,712,815, reflects investor confidence and provides the company with extra liquidity that can be used for various purposes, such as research and development or market expansion.

Investors should consider the potential dilutive effect of new share issuance on existing shareholders. However, in this case, the dilution is minimal given the modest size of the over-allotment relative to the total offering. The fact that the company's Class B common stock is listed on the Nasdaq Capital Market indicates a level of compliance with regulatory requirements and offers a degree of visibility and credibility among investors.

Market Research Analyst

Richtech Robotics operates within the AI-driven service robots industry, which is experiencing significant growth due to advancements in AI and robotics technology. The application in hospitality and healthcare sectors suggests a targeted approach to market penetration. The capital raised from the IPO can be instrumental in scaling operations, enhancing technology and potentially increasing market share in these sectors.

Long-term stakeholders should monitor the deployment of the raised funds and the company's ability to innovate and maintain a competitive edge in a rapidly evolving industry. The success of Richtech Robotics will likely hinge on its technological capabilities, strategic partnerships and the ability to navigate regulatory landscapes, particularly in healthcare where compliance is crucial.

Legal Expert

The offering's completion and the effectiveness of the registration statement by the SEC are key legal milestones for Richtech Robotics. The ability to file an effective Form S-1 indicates a certain level of regulatory diligence and transparency, which is essential for investor trust. Investors should be aware that the SEC’s role is to ensure disclosure of material information, rather than to endorse the quality of the investment.

Prospective and current investors should review the final prospectus, which details the company's financial position, risk factors and the intended use of proceeds. This document is an essential tool for making informed investment decisions. The legal stipulation that the securities cannot be sold in jurisdictions where it would be unlawful prior to registration or qualification under the securities laws highlights the importance of understanding the regulatory environment in which Richtech Robotics operates.

LAS VEGAS, Dec. 27, 2023 (GLOBE NEWSWIRE) -- Richtech Robotics Inc. (Nasdaq: RR) (“Richtech Robotics” or the “Company”), a Nevada company and a provider of AI-driven service robots for the hospitality and healthcare industries, today announced that it issued an additional 42,563 shares of the Company’s Class B common stock pursuant to partial exercise of the underwriters’ over-allotment option in connection with the Company’s initial public offering at $5.00 per share, resulting in additional gross proceeds of $212,815. Total proceeds of the Company's initial public offering, including the exercise of the over-allotment option, were $10,712,815.

The Company’s Class B common stock is listed on the Nasdaq Capital Market under the ticker symbol “RR.”

R. F. Lafferty & Co., Inc. acted as sole book-running manager for the offering. Revere Securities LLC acted as co-underwriter for the offering.

A registration statement on Form S-1 relating to these securities was filed with the Securities and Exchange Commission (“SEC”) and was declared effective on November 13, 2023. The offering was made only by means of a prospectus. A copy of the final prospectus relating to the offering has been filed with the SEC and is available on the SEC’s website at www.sec.gov. A copy of the final prospectus relating to the offering may be obtained from: Equity Capital Markets, R. F. Lafferty & Co., Inc., 40 Wall Street, 27th Floor, New York, NY 10005, by telephone: 212-293-9090, or by email at: offerings@rflafferty.com. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Richtech Robotics
Richtech Robotics is a provider of collaborative robotic solutions specializing in the service industry, catering to the hospitality and healthcare sectors. Our mission is to transform the service industry landscape by seamlessly integrating cutting-edge automation, thereby enhancing customer experiences and empowering businesses to achieve unparalleled levels of excellence and satisfaction.

Forward-Looking Statements
This press release and the prospectus contain forward-looking statements that involve risks and uncertainties. All statements other than statements of historical facts are forward-looking statements. You can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “likely to” or other similar expressions. The Company has based these forward-looking statements largely on its current expectations about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements.

Neither the Company nor the underwriters undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by law.

Contact:

Investors:
CORE IR
Matt Blazei
ir@richtechrobotics.com

Media:
Timothy Tanksley
Marketing Director
Richtech Robotics, Inc.
press@richtechrobotics.com
702-534-0050

FAQ

What is the recent announcement from Richtech Robotics Inc. (Nasdaq: RR)?

Richtech Robotics Inc. announced the issuance of an additional 42,563 shares of the Company’s Class B common stock at $5.00 per share, resulting in gross proceeds of $212,815.

What is the total proceeds of the initial public offering, including the exercise of the over-allotment option, for Richtech Robotics Inc. (Nasdaq: RR)?

The total proceeds of the initial public offering, including the exercise of the over-allotment option, were $10,712,815.

Where is the Company’s Class B common stock listed and what is the ticker symbol for Richtech Robotics Inc. (Nasdaq: RR)?

The Company’s Class B common stock is listed on the Nasdaq Capital Market under the ticker symbol “RR.”