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DUBLIN, Ohio - reAlpha Tech Corp. (NASDAQ:AIRE) announced Wednesday the pricing of a public offering that aims to raise approximately $2 million in gross proceeds before deducting placement agent fees and other expenses. The offering comes as InvestingPro data shows the company’s market capitalization stands at $11.34 million, with concerning financial metrics including negative EBITDA of -$7.26 million in the last twelve months.
The AI-powered real estate technology company is offering 13,333,334 shares of common stock at $0.15 per share, together with accompanying Series A-1 and Series A-2 warrants. Each share comes with one Series A-1 warrant and one Series A-2 warrant to purchase additional shares at an exercise price of $0.15 per share. The offering price reflects the stock’s significant decline, having lost over 93% of its value year-to-date according to InvestingPro data.
The Series A-1 warrants will expire five years from stockholder approval, while the Series A-2 warrants will expire after 24 months. Both warrant series will become exercisable upon receiving stockholder approval.
H.C. Wainwright & Co. is serving as the exclusive placement agent for the offering, which is expected to close around July 18, subject to customary closing conditions.
According to the company, proceeds will be used for working capital and general corporate purposes, potentially including debt repayment, acquisitions, capital expenditures, and cryptocurrency purchases in line with the company’s investment policy. This capital raise appears crucial as InvestingPro analysis indicates the company is quickly burning through cash, with a concerning current ratio of 0.58 suggesting short-term obligations exceed liquid assets. InvestingPro subscribers have access to 14 additional key financial insights about AIRE’s financial health.
The offering is being made pursuant to a registration statement on Form S-1 that was declared effective by the Securities and Exchange Commission on July 16.
reAlpha describes itself as developing an end-to-end platform that streamlines real estate transactions through integrated brokerage, mortgage, and title services, with the aim of creating a more affordable path to homeownership.
This announcement is based on a press release statement from the company.
In other recent news, reAlpha Tech Corp. disclosed its first-quarter 2025 financial results, reporting revenues of $0.9 million and an adjusted EBITDA loss of $2.0 million. Despite the revenue surpassing projections, the EBITDA fell short of expectations, leading Maxim Group to lower its price target for reAlpha to $1.25 while maintaining a Buy rating. The company also received a redemption notice from Streeterville Capital for $350,000, which reAlpha plans to settle by issuing common stock. Additionally, reAlpha received a notice from Nasdaq for non-compliance with the market value rule, granting the company until December 29, 2025, to regain compliance. In a strategic leadership change, Mike Logozzo has been appointed as the new CEO, with the company’s founder, Giri Devanur, transitioning to Executive Chairman. Furthermore, reAlpha entered a waiver agreement with Streeterville Capital, allowing it to comply with certain restrictions for its proposed equity offering. The company continues to face challenges, such as potentially seeking further capital, while focusing on growth initiatives and expansion in the real estate services market.
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