Arbe Robotics Raises $23 Million to Boost Chinese Market Penetration and Advance Perception Radar Solutions

Arbe Robotics (Nasdaq: ARBE), a global leader in perception radar solutions, has announced a definitive agreement to raise $23 million through the sale of its registered ordinary shares. The shares will be purchased by the Special Situations Funds and certain existing shareholders at a public offering price of $1.95 per share, reflecting a 10% discount to the average closing price for the 20-day trading period ending immediately prior to the execution of the definitive securities purchase agreement. The Special Situations Funds will contribute $15 million, with the remaining investment coming from three existing Arbe investors, including two who are affiliated with members of Arbe's Board of Directors. The offering is expected to close on or about June 13, 2023, subject to customary closing conditions. Arbe intends to use the net proceeds from this offering for general corporate purposes, including accelerating its penetration into the Chinese automotive market, capitalizing on recently proposed safety regulation, and strengthening its balance sheet. The company has also agreed to suspend its "At the Market" stock program for 12 months from the closing. Arbe's imaging radar is 100 times more detailed than any other radar on the market and is a mandatory sensor for L2+ and higher autonomy. The company is a leader in the fast-growing automotive radar market, which is projected to reach a total addressable market of $11 billion in 2025.