Cloudastructure secures additional $3 million investment

PALO ALTO, CA - Cloudastructure, Inc. (NASDAQ:CSAI), a provider of AI-powered cloud video surveillance solutions with a current market capitalization of $72.87 million, has announced an additional $3 million investment through the issuance of Series 2 Convertible Preferred Stock. The funding, secured from an existing institutional investor, aims to support the company’s continued expansion and advancement of its security solutions. According to InvestingPro data, this funding comes at a crucial time as the company faces short-term liquidity challenges with a current ratio of 0.48.

The 3,000 shares of Series 2 Convertible Preferred Stock, priced at $1,000 each, carry a 9.5% annual preferred return and can be converted into Class A common stock of the company under specific terms and conditions. Maxim Group LLC served as the sole placement agent for the transaction. The stock has experienced significant volatility, with InvestingPro showing an 86.43% decline over the past six months, trading well below its 52-week high of $52.43.

James McCormick, CEO of Cloudastructure, expressed gratitude for the investor’s ongoing support, emphasizing that the investment validates the company’s strategy and progress. The capital will be directed towards enhancing product development, scaling operations, and expanding sales, installation, and customer success teams to meet growing demand. Despite posting impressive revenue growth of 124.71% in the last twelve months, the company reported an EBITDA of -$6.05 million, highlighting the importance of this new funding round. Investors can access more detailed financial analysis and 8 additional key insights through InvestingPro.

This follow-on investment follows Cloudastructure’s recent $4.5 million raise and comes after its direct listing on the Nasdaq Capital Market. The company has gained recognition for its cloud-based surveillance and remote guarding platform, which utilizes proprietary AI and machine learning analytics for real-time monitoring and incident response. With its next earnings report due in 4 days, investors are closely watching for signs of improved financial performance.

Cloudastructure’s scalable cloud architecture is designed to improve security outcomes and reduce ownership costs for customers in sectors such as commercial real estate, education, healthcare, and government. The company’s platform promises up to a 75% lower Total Cost of Ownership compared to other systems.

Further details about the investment can be found in the company’s Form 8-K filed with the U.S. Securities and Exchange Commission (SEC).

This news is based on a press release statement from Cloudastructure, Inc.

In other recent news, Cloudastructure, Inc. has secured a $4.5 million investment through the issuance of Series 2 Convertible Preferred Stock, aimed at advancing its AI security solutions and expanding market reach. This investment reflects confidence from an existing institutional investor in Cloudastructure’s strategic direction. Additionally, Cloudastructure has announced a partnership with a top U.S. real estate investment firm to implement its surveillance services across multifamily communities, highlighting the growing importance of AI in the real estate sector. The company has also modified its agreement with Streeterville Capital, waiving the Trigger Event requirement for conversion price adjustments on its Series 1 Convertible Preferred Stock.

Further enhancing its operations, Cloudastructure has partnered with a crypto-mining company to host its AI infrastructure at a renewable energy data center in Montana, significantly reducing operational costs. In another strategic move, Cloudastructure has been selected to provide security enhancements for two large multifamily properties in the DC Metro area, addressing increasing security needs and compliance requirements. These recent developments underscore Cloudastructure’s focus on leveraging AI technology to meet market demands and improve operational efficiency.

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