Company Raises Approximately $30 Million through Convertible Debenture
Offering, Listed on Tel Aviv Stock Exchange
TEL
AVIV, Israel, June 6, 2024
/PRNewswire/ -- Arbe Robotics, Ltd.,
(NASDAQ: ARBE) (TASE:
ARBE), a global leader in perception radar solutions,
announced today the issuance of convertible debentures in the
principal amount of NIS 110,000,000 (approximately
$30 million) to Israeli investors.
The debentures bear an annual interest rate of 6.5%, mature
on May 30, 2028, and are convertible
into Arbe's ordinary shares at a conversion price
of NIS 9.53 (approximately $2.60) per share. Trading on the Tel Aviv Stock
Exchange ("TASE") commenced on June 6, 2024, and the Company's ordinary shares
are listed on both Nasdaq and
TASE.
The debentures were issued pursuant to a deed of trust dated
May 30, 2024, with Mishmeret Trust
Company Ltd. as trustee. Proceeds of approximately NIS 112,400,000 (approximately $30.6 million) from the sale of the debentures
are held in escrow and will be released to the Company if it meets
the following conditions by March 31,
2025:
- Being selected as a sole supplier of imaging radar chips by one
of ten major automobile manufacturers.
- Maintaining an average closing trading price of at least
$3.10 per share on Nasdaq over
30 consecutive trading days, with an average combined trading
volume of at least 300,000 shares per day on Nasdaq and TASE.
- The closing price of Arbe's ordinary shares on Nasdaq not
being less than $3.10 on the date the
Company presents evidence of fulfillment of the preceding
conditions to the Trustee.
If any debentures are converted into ordinary shares, the
corresponding funds in the escrow account will be released to
Arbe.
The terms of the debentures, including financial covenants, are
set forth in the deed of trust, which is available in Hebrew on the
Israel Securities Authority's MAGNA system. An English translation
will be filed with the U.S. Securities and Exchange Commission as
an amendment to a Form 6-K.
About Arbe
Arbe (NASDAQ: ARBE), a global leader in
Perception Radar solutions, is spearheading a radar revolution,
enabling truly safe driver-assist systems today while paving the
way to full autonomous-driving. Arbe's radar technology is 100
times more detailed than any other radar on the market and is a
critical sensor for L2+ and higher autonomy. The company is
empowering automakers, Tier 1 suppliers, autonomous ground
vehicles, commercial and industrial vehicles, and a wide array of
safety applications with advanced sensing and paradigm changing
perception. Arbe, a leader in the fast-growing automotive radar
market, is based in Tel Aviv,
Israel, and has offices in China, Germany, and the
United States.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains "forward-looking
statements" within the meaning of the Securities Act of 1933 and
the Securities Exchange Act of 1934, both as amended by the Private
Securities Litigation Reform Act of 1995. contains "forward-looking
statements" within the meaning of the Securities Act of 1933 and
the Securities Exchange Act of 1934, both as amended by the Private
Securities Litigation Reform Act of 1995. The words "expect,"
"believe," "estimate," "intend," "plan," "anticipate," "may,"
"should," "strategy," "future," "will," "project," "potential" and
similar expressions indicate forward-looking statements.
Forward-looking statements are predictions, projections and other
statements about future events that are based on current
expectations and assumptions and, as a result, are subject to risks
and uncertainties. These risks and uncertainties include, but are
not limited to the Company meeting the conditions to the release of
the net proceeds of the debenture offering from escrow and meeting
the covenants, the effect on the Israeli economy generally and on
the Company's business resulting from the terrorism and the
hostilities in Israel and with its
neighboring countries including the effects of the continuing war
with Hamas and any further intensification of hostilities with
others, including Iran and
Hezbollah, and the effect of the call-up of a significant portion
of its working population, including the Company's employees; the
effect of any potential boycott both of Israeli products and
business and of stocks in Israeli companies; the effect of any
downgrading of the Israeli economy and the effect of changes in the
exchange rate between the US dollar and the Israeli shekel; and the
risk and uncertainties described in "Cautionary Note Regarding
Forward-Looking Statements," "Item 3. Key Information – D. Risk
Factors" and "Item 5. Operating and Financial Review and Prospects"
and in the Company's Annual Report on Form 20-F for the year ended
December 31, 2023, which was filed
with the Securities and Exchange Commission (the "SEC") on
March 28, 2024, as well as other
documents filed by the Company with the SEC. Accordingly, you are
cautioned not to place undue reliance on these forward-looking
statements. Forward-looking statements relate only to the date they
were made, and the Company does not undertake any obligation to
update forward-looking statements to reflect events or
circumstances after the date they were made except as required by
law or applicable regulation.
Information contained on, or that can be accessed through, the
Company's website or any other website or any social media is
expressly not incorporated by reference into and is not a part of
this press release.
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SOURCE Arbe
