Demand for Arbe Convertible Debt Exceeded Expectations,
Reaching 230% of Amount Offered
TEL
AVIV, Israel, May 30, 2024
/PRNewswire/ -- Arbe Robotics, Ltd. (NASDAQ: ARBE) (TASE:
ARBE), a global leader in perception radar solutions, announced
today that its ordinary share are now traded on both the Nasdaq and
the Tel Aviv Stock Exchange (TASE). In addition, on May 28, 2024, a classified investor bid (for
Israeli classified investors) was successfully held to receive
preliminary commitments with respect to Arbe's proposed convertible
debt offering. Demand for the convertible debt exceeded
expectations, reaching 230% of the amount offered. Most of the
demand came from institutional investors, including mutual funds,
portfolio managers, and others.
The debentures will be issued and be traded on TASE pursuant to
a public bid in Israel, scheduled
for June 3, 2024. The debentures will bear interest at a
stated interest rate of 6.5% per annum and will be convertible into
ordinary shares at a conversion price of NIS
9.53 (approximately $2.6). The
debentures will be issued pursuant to a deed of trust with an
indenture trustee, which sets forth the terms of the debentures,
including the total principal number of debentures issued, the
purchase price of the debentures, covenants and events of
default.
The net proceeds from the sale of the debentures, will be up to
NIS 120 million (approximately
$32M), and will be held in escrow and
released to Arbe upon satisfaction of the several conditions by
March 31, 2025, as detailed in the
deed of trust, including that Arbe will be selected to supply its
products as a single supplier of chips of Imaging Radar to one out
of ten leading car manufacturers; and a consistent increase in the
closing trading prices and trading volume for a period of time.
The debentures are being offered only to Israeli investors. The
debentures will be issued pursuant to a prospectus filed by Arbe
with the TASE and the Israeli Securities Authority.
"We are very pleased with the interest and preliminary
commitments for the debenture offering and the listing of our
ordinary shares on TASE," said Kobi
Marenko, CEO of Arbe. "This demonstrates the growing
interest and strong belief in the company's prospects. This
strategic move reflects Arbe's commitment to expanding its market
presence, ensuring robust financial health, and supporting its
mission to revolutionize radar technology for safer roads and an
autonomous future."
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 key 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. 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 Arbe meeting the conditions to the release of the net
proceeds of the debenture offering from escrow, the effect on the
Israeli economy generally and on Arbe'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 Arbe'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 Arbe'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 Arbe 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 Arbe 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,
Arbe'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 Robotics