By Katherine Hamilton
Serve Robotics shares declined Tuesday after the company said it plans to initiate a registered direct offering of 4.2 million shares.
The stock fell 19% to $18.56 in morning trading, erasing the gains it notched Monday, when it hit a six-month high after Serve said it had raised enough money to self-fund its operations for the next two years.
The San Francisco-based company, which makes delivery robots, plans to offer shares at $19 apiece. The gross proceeds are expected to be around $80 million.
Serve plans to use the proceeds for working capital, capital expenditures and general and administrative expenses, it said. The offering is set to close Tuesday.
As part of the offering, Northland Securities will serve as a placement agent to find interested investors. Serve has agreed to pay Northland 5% of the offering's gross proceeds.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
January 07, 2025 10:12 ET (15:12 GMT)
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