reAlpha Tech Corp. enters waiver agreement with Streeterville Capital

reAlpha Tech Corp. (NASDAQ:AIRE), currently trading at $0.22 near its 52-week low and showing concerning financial metrics according to InvestingPro data, announced Wednesday that it entered into a consent, release, and waiver agreement with Streeterville Capital, LLC on July 15, 2025. The agreement relates to a prior note purchase agreement and secured promissory note dated August 14, 2024.

Under the terms of the waiver, reAlpha Tech Corp. is permitted to comply with standstill provisions required by the securities purchase agreement for its proposed follow-on equity offering, which is registered on Form S-1. With a current ratio of 0.58 and total debt of $5.95 million, this financing move comes as the company faces significant liquidity challenges. Specifically, the waiver allows the company to restrict itself from engaging in variable rate financings for up to one year following the closing of the offering, and from entering into any equity financings for up to 60 days after the closing, with certain exceptions.

Streeterville Capital agreed that reAlpha Tech Corp.’s adherence to these restrictions will not be considered a breach of the note purchase agreement or the related promissory note. It will also not trigger any default or similar events under those agreements. The waiver will lapse if the offering is not conducted on or before July 31, 2025.

This information is based on a press release statement contained in a recent SEC filing.

In other recent news, reAlpha Tech Corp. reported first-quarter 2025 revenues of $0.9 million, surpassing both Maxim Group’s projections and consensus estimates. However, the company’s adjusted EBITDA showed a loss of $2.0 million, falling short of expectations. Additionally, reAlpha Tech received a redemption notice from Streeterville Capital for a $350,000 payment, which the company plans to settle by issuing common stock. In another development, the company received a Nasdaq notice for non-compliance with the market value rule, requiring a minimum market value of $35 million over 30 consecutive business days.

ReAlpha Tech has been given until December 29, 2025, to regain compliance. The company also announced a leadership change, appointing Mike Logozzo as the new CEO, with founder Giri Devanur transitioning to Executive Chairman. Meanwhile, Maxim Group adjusted its price target for reAlpha Tech to $1.25 from $3.00, maintaining a Buy rating. The firm cited increased expenditure on growth initiatives as a reason for the revised target. ReAlpha Tech continues to explore options to meet Nasdaq’s compliance requirements and support its operations.

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