SAN JOSE, CA - Peraso Inc. (NASDAQ:PRSO), a company specializing in mmWave technology, has announced the terms of its public offering, which involves 480,000 shares of common stock and various warrants. The offering, managed solely by Ladenburg Thalmann & Co. Inc., is expected to close on February 8, 2024, contingent on customary closing conditions.
The offering includes pre-funded warrants to purchase up to 1,424,760 shares and Series A and Series B warrants to purchase up to 3,809,520 shares each. Series A warrants are priced at $2.25 per share, exercisable immediately and valid for five years post-issuance, while Series B warrants share the same exercise price, can also be exercised immediately but will expire six months after issuance. Pre-funded warrants are exercisable at a nominal price of $0.001 per share.
Each common stock share and pre-funded warrant is bundled with one Series A warrant and one Series B warrant. The combined public offering price for each share, along with the accompanying warrants, is $2.10, and for pre-funded warrants, it is $2.099, both subject to underwriting discounts and commissions.
Peraso aims to raise approximately $4 million before deductions such as underwriting discounts and commissions, and other offering expenses. The company has also granted the underwriter an option to purchase additional securities within 45 days following the same terms.
The net proceeds from the offering are intended for funding operations, working capital, and other general corporate purposes. This move follows the effective registration statement filed with the Securities and Exchange Commission (SEC) on the day of the announcement.
Investors can access the preliminary prospectus from the SEC's website, and upon availability, the final prospectus will also be provided by contacting Ladenburg Thalmann & Co. Inc. directly.
Peraso, recognized for its contributions to 60 GHz unlicensed and 5G mmWave wireless technology, supports a range of applications from fixed wireless access to immersive video and factory automation. The company's solutions also extend to data and telecom networks, emphasizing data intelligence acceleration and multi-access edge computing.
The information about this offering is based on a press release statement.
InvestingPro Insights
As Peraso Inc. (NASDAQ:PRSO) ventures into its public offering, investors are closely monitoring the company's financial health and stock performance. According to real-time data from InvestingPro, Peraso's Market Cap stands at a modest $1.42 million USD, reflecting the size of the company within the technology sector. The company's Price / Book ratio as of the last twelve months ending Q3 2023 is at a low of 0.21, which could indicate that the stock is potentially undervalued relative to its assets. This aligns with one of the InvestingPro Tips suggesting that the stock is trading at a low Price / Book multiple.
However, the company has faced significant challenges, as evidenced by the substantial price decline over the last year, with a 1 Year Price Total Return of -92.52%. This is further substantiated by another InvestingPro Tip indicating that the stock has taken a big hit over the last week, with a 1 Week Price Total Return of -42.02%. Analysts' concerns about a potential sales decline in the current year may add to the bearish sentiment surrounding the stock.
Investors considering capitalizing on the current offering might be attracted by the company's recent revenue growth, which was 23.04% over the last twelve months as of Q3 2023. Nonetheless, the company's financials also show a significant Operating Income Margin of -109.99%, revealing challenges in achieving profitability.
For those looking for a deeper dive into the financial nuances of Peraso, InvestingPro offers a comprehensive set of additional tips. There are currently 21 InvestingPro Tips available for PRSO, which can be accessed by visiting https://www.investing.com/pro/PRSO. These tips provide valuable insights that could help investors make more informed decisions.
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