SAN CARLOS, Calif. - Presto Automation, Inc. (NASDAQ: PRST), a major provider of AI and automation technology for the restaurant industry, has entered into a securities purchase agreement with institutional investors for a registered direct offering. The deal involves the sale of 4.8 million shares of common stock at $0.25 per share, which is above the Nasdaq Minimum Price.
The transaction is slated to close by March 18, 2024, contingent on customary closing conditions. Chardan is serving as the sole placement agent for the offering.
Presto expects to raise approximately $1.2 million in gross proceeds from the offering, before accounting for Chardan's fees and other related expenses. The net proceeds are intended for working capital and general corporate purposes.
This offering follows a shelf registration statement filed with the Securities and Exchange Commission (SEC) on October 20, 2023, and declared effective on October 30, 2023. A prospectus supplement and the accompanying base prospectus detailing this offering will be filed with the SEC.
Presto's product lineup includes Presto Voice™, an AI solution for quick-service restaurants, and Presto Touch, a pay-at-table tablet for casual dining chains. Presto's technology aims to reduce labor costs, boost staff productivity, increase revenue, and improve customer experience.
The information in this article is based on a press release statement from Presto Automation, Inc.
InvestingPro Insights
As Presto Automation, Inc. (NASDAQ: PRST) embarks on its latest capital raise, a look at the company's financial health through InvestingPro metrics reveals a challenging landscape. With a market capitalization of just $20.23 million, the company's size remains modest in a sector where scale can be crucial. The real-time data also underscores a significant revenue contraction, with revenue having declined by nearly 29.64% over the last twelve months as of Q2 2024. This decline is further reflected in the quarterly figure, with a 33.45% drop in the same period.
InvestingPro Tips suggest that Presto Automation operates with a significant debt burden and is quickly burning through cash, which may be a concern for investors considering the recent stock price volatility. In fact, the stock price has taken a considerable hit over the past week, with a 21.09% decline in total return. This volatility is not a new trend, as the stock has experienced a dramatic 93.06% drop over the last six months. With analysts not anticipating profitability this year and expecting a sales decline, these factors may weigh on investor sentiment.
For readers interested in a deeper dive into Presto Automation's financials and future prospects, InvestingPro offers additional insights and data points. There are currently 17 more InvestingPro Tips available that can provide a more comprehensive understanding of the company's position and outlook. To access these insights, visit the dedicated page for Presto Automation at https://www.investing.com/pro/PRST. Moreover, for those considering an InvestingPro subscription, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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