Serve Robotics (SERV) shares were down more than 13% premarket Tuesday after the company said it signed securities purchase agreements with certain institutional investors for an $80 million registered direct offering.

The agreements cover the sale of about 4.2 million common shares to raise $80 million in gross proceeds, according to the statement.

Serve Robotics said it expects to close the offering on or about Tuesday and that proceeds will be used for general purposes including working capital.