reAlpha Tech Corp. completes $3.1 million warrant exercise

DUBLIN, Ohio - reAlpha Tech Corp. (NASDAQ:AIRE), a company specializing in real estate technology and AI, has completed the exercise of outstanding warrants, generating gross proceeds of approximately $3.1 million. The warrants, originally issued in November 2023 with an exercise price of $1.44 per share, were exercised at a reduced price of $0.75 per share. The company's stock, currently trading at $0.56, has experienced significant pressure, down nearly 80% year-to-date according to InvestingPro data.

The company announced that the common stock issued upon the warrant exercise is registered under an effective registration statement. H.C. Wainwright & Co. served as the exclusive placement agent for the transaction.

In addition to the exercised warrants, reAlpha issued new unregistered warrants for the purchase of up to 8,437,502 shares of common stock. These new warrants have the same exercise price of $0.75 per share and will become exercisable upon stockholder approval. Set to expire on November 24, 2028, the new warrants and the shares issuable upon their exercise have not been registered under the Securities Act of 1933 and are subject to SEC registration or an applicable exemption.

The proceeds from this warrant exercise will be directed toward general working capital for the company, a crucial move given that InvestingPro analysis indicates the company is quickly burning through cash with negative free cash flow of $5.24 million. reAlpha also adjusted the exercise price for all outstanding November 2023 warrants to match the reduced rate of $0.75 per share. With the company's market capitalization at $26.1 million and upcoming earnings report in 10 days, investors seeking deeper insights can access 18 additional ProTips and comprehensive financial metrics through InvestingPro.

reAlpha, known for developing an end-to-end commission-free homebuying platform, aims to streamline the home purchasing process using AI technology. The company has committed to filing a registration statement with the SEC for the resale of shares issuable upon the exercise of the new warrants.

This press release does not constitute an offer to sell or a solicitation to buy these securities in any jurisdiction where such an offer or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.

The information in this article is based on a press release statement from reAlpha Tech Corp.

In other recent news, reAlpha Tech Corp. has entered into agreements for the exercise of outstanding warrants, which will result in the purchase of approximately 4.2 million shares of common stock at a reduced exercise price of $0.75 per share. This transaction is expected to generate gross proceeds of about $3.1 million, intended for general working capital. In addition, the company has terminated its At the Market Sales Agreement with A.G.P./Alliance Global Partners, effective March 29, 2025, after selling 160,879 shares and generating gross proceeds of $231,235.73.

Furthermore, reAlpha Tech Corp. faced a legal setback when the United States District Court for the Southern District of New York dismissed its complaint against GEM Yield Bahamas Limited regarding warrant disputes. On the technology front, reAlpha's subsidiary AiChat Pte. Ltd. has launched new AI-powered digital agents designed to enhance customer service through personalized interactions. The company also announced changes to its at-the-market sales agreement, lowering the floor price for share offerings from $3.90 to $0.01 per share and reducing the total offering amount to $11,700,000.

Additionally, reAlpha disclosed the departure of Jorge Aldecoa as Chief Product Officer and plans to enter a separation agreement with him. These recent developments underscore reAlpha's ongoing adjustments in its financial and operational strategies.

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