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SAN FRANCISCO - Serve Robotics Inc. (NASDAQ:SERV), a sidewalk delivery company with a market capitalization of $1.06 billion, announced Friday it has entered into agreements with institutional investors to sell 6,250,000 shares of common stock in a registered direct offering expected to generate approximately $100 million in gross proceeds. The announcement comes as the stock has surged 34.76% in the past week, according to InvestingPro data.
The transaction is anticipated to close on or about October 14, subject to customary closing conditions. Northland Capital Markets is serving as the sole placement agent, while Oppenheimer & Co. Inc. and Wedbush Securities Inc. are acting as capital markets advisors.
Serve Robotics plans to use the net proceeds for general corporate purposes, including working capital, according to the company’s press release.
The offering is being conducted through an effective shelf registration statement previously filed with and declared effective by the Securities and Exchange Commission.
Serve Robotics, which spun off from Uber in 2021, develops AI-powered sidewalk delivery robots. The company reports having completed over 100,000 deliveries for partners including Uber Eats and 7-Eleven, and holds contracts to deploy up to 2,000 delivery robots across multiple U.S. markets.
The announcement comes as autonomous delivery companies seek to expand operations amid growing demand for contactless delivery options. While the stock appears overvalued according to InvestingPro’s Fair Value analysis, subscribers can access 15+ additional ProTips and comprehensive financial metrics to make informed investment decisions.
In other recent news, Serve Robotics has announced a significant partnership with DoorDash to deploy its sidewalk robots for food delivery orders, expanding its reach beyond the existing Uber Eats collaboration. This development allows customers in Los Angeles to have their orders delivered by Serve robots, with plans to expand this service across the United States. Additionally, Serve Robotics has deployed its 1,000th third-generation autonomous delivery robot, with 380 of these robots introduced in September across various U.S. communities. The company remains on track to achieve its goal of deploying 2,000 robots by the end of 2025. Furthermore, Serve Robotics has expanded its autonomous delivery service to Chicago, marking its first venture into the Midwest. The service will cover 14 neighborhoods, including Lincoln Park and Lakeview, delivering food from over 100 restaurants. In related news, Cantor Fitzgerald has reiterated its Overweight rating and $17.00 price target on Serve Robotics, following the company’s expansion into Chicago. The firm also maintained its rating after Serve Robotics’ acquisition of Voysys AB, a Swedish company specializing in teleoperation technology, which aims to bolster its technology stack.
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