ScanTech AI Systems Signs Term Sheet for $20 Million Financing with ARC Group to Enhance Liquidity and Strategic Flexibility
ScanTech AI Systems (Nasdaq: STAI) entered a non-binding term sheet with ARC Group for a proposed $20 million subordinated convertible note facility to enhance liquidity and strategic flexibility.
Key terms include up to $6 million at initial closing after an S-1 registration and shareholder approvals, subsequent $2 million tranches every 45 trading days, a 9% annual dividend, 3% original issue discount, conversion at 110% of the prior closing price with a $1.00 per share floor, and five-year warrants up to 30% of each tranche.
The term sheet is non-binding and subject to definitive agreements, due diligence, and customary closing conditions.
ScanTech AI Systems (Nasdaq: STAI) ha stipulato una lettera d'intenti non vincolante con ARC Group per una potenziale linea di note convertibili subordinate da $20 million per migliorare liquidità e flessibilità strategica.
Termini chiave includono fino a $6 million al closing iniziale dopo una registrazione S-1 e l'approvazione degli azionisti, successive tranche da $2 million ogni 45 giorni di negoziazione, un dividendo annuo del 9%, uno sconto sull'emissione del 3%, conversione al 110% del prezzo di chiusura precedente con un minimo di $1,00 per azione, e warrant di cinque anni fino al 30% di ciascuna tranche.
La lettera d'intenti è non vincolante e soggetta a accordi definitivi, due diligence e condizioni di chiusura considerate usuali.
ScanTech AI Systems (Nasdaq: STAI) entró en una carta de intenciones no vinculante con ARC Group para una posible facilidad de notas convertibles subordinadas por $20 millones para mejorar la liquidez y la flexibilidad estratégica.
Los términos clave incluyen hasta $6 millones en el cierre inicial tras el registro S-1 y las aprobaciones de los accionistas, tramos subsecuentes de $2 millones cada 45 días hábiles, un dividendo anual del 9%, un descuento de emisión del 3%, conversión al 110% del precio de cierre anterior con un suelo de $1.00 por acción, y warrants de cinco años hasta el 30% de cada tramo.
La carta de intenciones es no vinculante y está sujeta a acuerdos definitivos, diligencia debida y condiciones de cierre habituales.
ScanTech AI Systems (Nasdaq: STAI)는 ARC Group과 구속력 없는 조건서로서 $20 million의 종속 전환사채 한도를 제안하는 형태로 유동성과 전략적 유연성을 강화하기로 합의했습니다.
주요 조건은 $6 million까지 초기 종결 시점에 S-1 등록 및 주주 승인 후, 이후 $2 million씩 45 거래일마다 분배, 연간 9% 배당, 발행가 할인율 3%, 이전 종가의 110%로 전환하되 주당 $1.00의 하한, 그리고 각 트랜치의 5년 만기 워런트가 최대 30%까지라는 내용입니다.
이 조건서는 구속력이 없으며 확정 계약, 실사 및 일반적인 마감 조건에 따릅니다.
ScanTech AI Systems (Nasdaq: STAI) a signé une lettre d'intention non contraignante avec ARC Group pour une éventuelle facilité de notes convertibles subordonnées d’un montant de 20 millions de dollars afin d’améliorer la liquidité et la flexibilité stratégique.
Les termes clés prévoient jusqu’à 6 millions de dollars au closing initial après l’enregistrement S-1 et les approbations des actionnaires, des tranches subséquentes de 2 millions de dollars tous les 45 jours de bourse, un rendement annuel de 9%, une remise sur émission de 3%, une conversion à 110% du prix de clôture précédent avec un plancher de 1,00 $ par action, et des warrants de cinq ans jusqu’à 30% de chaque tranche.
La lettre d’intention est non contraignante et soumis à des accords définitifs, à la due diligence et à des conditions de clôture habituelles.
ScanTech AI Systems (Nasdaq: STAI) hat mit ARC Group eine nicht bindende Term Sheet Vereinbarung getroffen, um eine vorgeschlagene 20 Millionen USD subordinierte wandelbare Darlehenfazilität zur Verbesserung der Liquidität und strategischen Flexibilität zu sichern.
Zu den Schlüsselkonditionen gehören bis zu 6 Millionen USD beim ersten Closing nach einer S-1-Registrierung und der Zustimmung der Aktionäre, anschließende Tranches von 2 Millionen USD alle 45 Handelstage, eine jährliche Dividende von 9%, ein Ausgabeabschlag von 3%, eine Umwandlung zu 110% des vorherigen Schlusskurses mit einer Untergrenze von 1,00 USD je Aktie und fünf Jahre laufende Warrants bis zu 30% jeder Tranche.
Die Term Sheet ist nicht bindend und vorbehaltlich endgültiger Vereinbarungen, Due Diligence und üblicher Abschlussbedingungen.
ScanTech AI Systems (Nasdaq: STAI) أبرمت ورقة شروط غير ملزمة مع ARC Group لسلسلة مقترحة من سندات قابلة للتحويل الفرعية بقيمة $20 مليون لتعزيز السيولة والمرونة الاستراتيجية.
تشمل الشروط الرئيسية حتى $6 مليون عند الإغلاق الأول بعد تسجيل S-1 وموافقات المساهمين، وأقساط $2 مليون التالية كل 45 يومًا تداولا، وعائد سنوي قدره 9%، وخصم إصدار 3%، وتحويل عند 110% من سعر الإغلاق السابق مع أرضية 1.00 دولار للسهم، ومـوارنتس لخمس سنوات حتى 30% من كل قرض.
ورقة الشروط غير ملزمة وتخضع لاتفاقيات نهائية وتدقيق دقيق وظروف إغلاق اعتيادية.
- Up to $20M proposed subordinated convertible note facility
- Initial $6M available after S-1 filing and approvals
- Regular $2M tranches every 45 trading days
- Includes five-year warrants up to 30% per tranche
- 9% annual dividend increases financing cost
- 3% original issue discount reduces net proceeds
- Conversion at 110% of prior close may dilute shareholders
- Facility access contingent on S-1 filing and shareholder approvals
Insights
Non-binding $20M subordinated convertible note term sheet provides near-term liquidity but brings dilution and conditional funding.
The proposed facility offers access to up to
This structure clearly strengthens near-term liquidity and supports execution of stated operational objectives, but it also creates dilution mechanics through conversion and sizeable warrant coverage and embeds cash cost via the dividend and discount. Key conditional dependencies are the non-binding status, completion of due diligence, negotiation of definitive agreements, successful Form S-1 filing, and shareholder approvals; failure of any condition would prevent access to the described proceeds. Monitor the Form S-1 filing and shareholder approval timeline, the timing of the initial
Atlanta, GA, Nov. 24, 2025 (GLOBE NEWSWIRE) -- ScanTech AI Systems Inc. (the "Company" or "ScanTech AI") (Nasdaq: STAI), a developer of advanced AI-powered security screening and imaging systems, today announced that it has entered into a non-binding term sheet with ARC Group International Ltd. (“ARC Group”) for a proposed
The Company believes that this prospective financing will complement and operate alongside the Company’s previously announced ARC Investment Agreement and Equity Line of Credit (“ELOC”), providing ScanTech with greater flexibility in managing working capital, supporting ongoing commercial deployments, and strengthening its balance sheet as it executes its near-term growth objectives.
Under the term sheet, the Company would have access to up to
Dolan Falconer, Chief Executive Officer of ScanTech AI Systems, commented, “The Company believes this proposed financing builds on our existing relationship with ARC Group and would further strengthen our liquidity position as we scale our technology platform across the aerospace, nuclear, and industrial sectors. Combined with the recently signed Purchase Agreement, this facility is designed to give us a flexible set of tools to support execution of current contracts, expansion of field deployments, and continued operational progress.”
The Company emphasized that the term sheet is non-binding, and any transaction remains subject to the negotiation and execution of definitive agreements, completion of due diligence, and satisfaction of customary closing conditions. ScanTech cannot provide assurances that the proposed financing will be completed on the terms described or at all.
About ScanTech AI
ScanTech AI Systems Inc. (Nasdaq: STAI) has developed one of the world’s most advanced non-intrusive ‘fixed-gantry’ CT screening technologies. Utilizing proprietary artificial intelligence and machine learning capabilities, ScanTech AI’s state-of-the-art scanners accurately and quickly detect hazardous materials and contraband. Engineered to automatically locate, discriminate, and identify threat materials and items of interest, ScanTech AI’s solutions are designed for use in airports, seaports, borders, embassies, corporate headquarters, government and commercial buildings, factories, processing plants, and other facilities where security is a priority.
For more information, visit www.scantechais.com and investor.scantechais.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, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on current expectations, estimates, forecasts, and projections, and the beliefs and assumptions of management. Words such as “expects,” “intends,” “plans,” “believes,” “seeks,” “may,” “will,” “should,” “anticipates,” or the negative or plural of these words, and similar expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
These statements relate to, among other things, the Company’s ability to draw funds under the equity line of credit, complete additional financings, maintain Nasdaq listing compliance, execute its growth strategy, and develop or commercialize its technologies. The Company cannot draw funds under the equity line of credit until the shares of common stock to be issued under the equity line of credit are registered with the SEC. Additionally, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results to differ materially from those expressed or implied herein.
These risks and uncertainties include, but are not limited to: market conditions; dilution and volatility associated with equity financings; the Company’s ability to remain in compliance with Nasdaq listing standards; operational and regulatory risks in the artificial intelligence and security technology sectors; product and service acceptance; regulatory oversights; whether ScanTech AI will have sufficient capital to operate as anticipated; and other factors detailed in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Should one or more of these risks of uncertainties materialize, or should any of the assumptions of ScanTech AI prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements.
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this release and are based on the information available to ScanTech AI as of the date hereof. ScanTech AI assumes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as may otherwise be required under applicable law.
Media Contact
ScanTech AI Systems Inc.
D. Williams Sr. VP Sales & Investor/Government Relations
jwhite@scantechibs.com
Investor & Media Relations Contact:
International Elite Capital Inc.
Annabelle Zhang
+1(646) 866-7928
annabelle@iecapitalusa.com
FAQ
What financing did ScanTech AI (STAI) announce on November 24, 2025?
How much initial funding will STAI receive under the proposed ARC financing?
What are the key economic terms of the STAI convertible notes?
How are additional tranches structured in the STAI proposed financing?
What shareholder impact should STAI investors watch for with this ARC financing?
