SAN CARLOS, Calif. – Presto Automation, Inc. (NASDAQ: PRST), a prominent provider of AI and automation technology to the restaurant industry, has announced a registered direct offering to institutional investors. The sale comprises 8,533,000 shares of common stock, priced at $0.25 each, with expectations to close the transaction by March 4, 2024, pending customary closing conditions.
The gross proceeds from the offering are anticipated to be around $2.1 million. However, this figure does not account for the fees for joint placement agents Chardan and Spartan, as well as other offering expenses. The net proceeds are slated for working capital and general corporate purposes.
This offering follows a shelf registration statement on Form S-3 filed with the Securities and Exchange Commission (SEC) on October 20, 2023, and declared effective on October 30, 2023. Details of the offering will be available in a prospectus supplement and the accompanying base prospectus to be filed with the SEC.
Presto is known for its enterprise-grade solutions such as Presto Voice™ for quick service restaurants and Presto Touch for casual dining chains. Its technology aims to reduce labor costs, boost staff productivity, increase revenue, and improve customer experience. Presto's clientele includes well-known U.S. restaurant chains like Carl’s Jr., Hardee’s, and Checkers.
Investors and media interested in further details can refer to the documents Presto will file with the SEC, which will be publicly accessible on the SEC's website.
This news is based on a press release statement from Presto Automation, Inc.
InvestingPro Insights
As Presto Automation, Inc. (NASDAQ: PRST) navigates through its latest financial maneuver, a registered direct offering, insights from InvestingPro offer a deeper perspective on the company's financial health. With a market capitalization of $32.11 million and a recent surge in stock price, delivering an impressive 47.82% total return over the last week, investors may see a glimmer of opportunity.
InvestingPro Data reveals a challenging landscape with a negative P/E ratio of -0.222 and a significant year-over-year revenue decline of -29.64%. Additionally, the company's gross profit margin stands at 13.94%, which, when coupled with an operating income margin of -248.1%, highlights the financial strains Presto is currently facing.
InvestingPro Tips suggest that the company is operating with a significant debt burden and is quickly burning through cash, which aligns with the need for the capital raise through the offering. Analysts are not optimistic about profitability in the near term, expecting a sales decline in the current year.
For investors considering a deeper dive into Presto Automation's financials, there are 16 additional InvestingPro Tips available at https://www.investing.com/pro/PRST. These tips could provide further clarity on the company's fiscal strategy and outlook. Interested parties can use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a more comprehensive understanding of the investment landscape surrounding PRST.
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