Serve Robotics shares fall over 14% after direct offering

Serve Robotics shares dropped over 14% in premarket trading following the announcement of a registered direct offering.

The company disclosed agreements with certain institutional investors for the sale of 4,210,525 shares of common stock. This transaction is anticipated to generate gross proceeds of approximately $80 million, prior to the deduction of fees and other related expenses.

The offering is scheduled to close around January 7, 2025, provided all customary closing conditions are met.

Serve Robotics has stated that the net proceeds from this offering will be allocated toward general corporate purposes, which include bolstering its working capital.

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Source: Investing.com