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reAlpha Tech Corp. Announces Exercise of Warrants for $3.1 Million Gross Proceeds

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reAlpha Tech Corp. (AIRE) has announced definitive agreements for the immediate exercise of warrants originally issued in November 2023. The company will receive approximately $3.1 million in gross proceeds through the exercise of 4,218,751 warrants at a reduced price of $0.75 per share, down from the original $1.44.

In exchange, reAlpha will issue new unregistered warrants to purchase up to 8,437,502 shares at $0.75 per share, exercisable upon stockholder approval and expiring November 24, 2028. Additionally, the company is reducing the exercise price for all outstanding November 2023 warrants to $0.75 per share. H.C. Wainwright & Co. serves as the exclusive placement agent, with the offering expected to close around April 8, 2025.

The net proceeds will be used for general working capital purposes.

reAlpha Tech Corp. (AIRE) ha annunciato accordi definitivi per l'esercizio immediato di warrant originariamente emessi a novembre 2023. L'azienda ricever脿 circa 3,1 milioni di dollari in proventi lordi attraverso l'esercizio di 4.218.751 warrant a un prezzo ridotto di 0,75 dollari per azione, rispetto ai precedenti 1,44 dollari.

In cambio, reAlpha emetter脿 nuovi warrant non registrati per acquistare fino a 8.437.502 azioni a 0,75 dollari per azione, esercitabili previa approvazione degli azionisti e con scadenza il 24 novembre 2028. Inoltre, l'azienda sta riducendo il prezzo di esercizio per tutti i warrant in circolazione di novembre 2023 a 0,75 dollari per azione. H.C. Wainwright & Co. funge da agente di collocamento esclusivo, con l'offerta prevista per chiudere intorno all'8 aprile 2025.

I proventi netti saranno utilizzati per scopi generali di capitale circolante.

reAlpha Tech Corp. (AIRE) ha anunciado acuerdos definitivos para el ejercicio inmediato de warrants emitidos originalmente en noviembre de 2023. La compa帽铆a recibir谩 aproximadamente 3,1 millones de d贸lares en ingresos brutos a trav茅s del ejercicio de 4.218.751 warrants a un precio reducido de 0,75 d贸lares por acci贸n, por debajo del precio original de 1,44 d贸lares.

A cambio, reAlpha emitir谩 nuevos warrants no registrados para comprar hasta 8.437.502 acciones a 0,75 d贸lares por acci贸n, que podr谩n ejercerse con la aprobaci贸n de los accionistas y que vencer谩n el 24 de noviembre de 2028. Adem谩s, la compa帽铆a est谩 reduciendo el precio de ejercicio de todos los warrants pendientes de noviembre de 2023 a 0,75 d贸lares por acci贸n. H.C. Wainwright & Co. act煤a como agente de colocaci贸n exclusivo, y se espera que la oferta cierre alrededor del 8 de abril de 2025.

Los ingresos netos se utilizar谩n para fines generales de capital de trabajo.

reAlpha Tech Corp. (AIRE)電� 2023雲� 11鞗旍棎 觳橃潓 氚滍枆霅� 鞗岆煱韸胳潣 歃夑皝鞝侅澑 頄夓偓鞐� 雽頃� 頇曥爼 瓿勳暯鞚� 氚滍憸頄堨姷雼堧嫟. 須岇偓電� 鞎� 310毵� 雼煬鞚� 齑� 靾橃澋鞚� 0.75雼煬鞚� 頃犾澑霅� 臧瓴╈溂搿� 4,218,751臧滌潣 鞗岆煱韸鸽ゼ 頄夓偓頃橃棳 氚涭潉 鞓堨爼鞛呺媹雼�. 鞚措姅 鞗愲灅 1.44雼煬鞐愳劀 雮稑 臧瓴╈瀰雼堧嫟.

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reAlpha Tech Corp. (AIRE) a annonc茅 des accords d茅finitifs pour l'exercice imm茅diat de bons de souscription 茅mis 脿 l'origine en novembre 2023. La soci茅t茅 recevra environ 3,1 millions de dollars de produits bruts gr芒ce 脿 l'exercice de 4.218.751 bons 脿 un prix r茅duit de 0,75 dollar par action, contre 1,44 dollar 脿 l'origine.

En 茅change, reAlpha 茅mettra de nouveaux bons de souscription non enregistr茅s pour acheter jusqu'脿 8.437.502 actions 脿 0,75 dollar par action, exer莽ables sous r茅serve de l'approbation des actionnaires et expirant le 24 novembre 2028. De plus, la soci茅t茅 r茅duit le prix d'exercice de tous les bons de souscription en circulation de novembre 2023 脿 0,75 dollar par action. H.C. Wainwright & Co. agit en tant qu'agent de placement exclusif, l'offre devant se cl么turer autour du 8 avril 2025.

Les produits nets seront utilis茅s pour des besoins g茅n茅raux en fonds de roulement.

reAlpha Tech Corp. (AIRE) hat endg眉ltige Vereinbarungen f眉r die sofortige Aus眉bung von Warrants bekannt gegeben, die urspr眉nglich im November 2023 ausgegeben wurden. Das Unternehmen wird etwa 3,1 Millionen Dollar an Bruttoerl枚sen durch die Aus眉bung von 4.218.751 Warrants zu einem reduzierten Preis von 0,75 Dollar pro Aktie erhalten, im Vergleich zu den urspr眉nglichen 1,44 Dollar.

Im Gegenzug wird reAlpha neue nicht registrierte Warrants ausgeben, um bis zu 8.437.502 Aktien zu einem Preis von 0,75 Dollar pro Aktie zu erwerben, die nach Genehmigung der Aktion盲re ausge眉bt werden k枚nnen und am 24. November 2028 ablaufen. Dar眉ber hinaus senkt das Unternehmen den Aus眉bungspreis f眉r alle ausstehenden Warrants vom November 2023 auf 0,75 Dollar pro Aktie. H.C. Wainwright & Co. fungiert als exklusiver Platzierungsagent, wobei der Abschluss des Angebots um den 8. April 2025 erwartet wird.

Die Nettomittel werden f眉r allgemeine Betriebskapitalzwecke verwendet.

Positive
  • Immediate capital raise of $3.1 million strengthens working capital
  • Successfully negotiated warrant exercise at current market conditions
Negative
  • Significant dilution through issuance of 8,437,502 new warrants
  • Warrant exercise price reduced by 48% from $1.44 to $0.75
  • Additional dilution potential from price reduction of all outstanding November 2023 warrants

Insights

reAlpha's warrant exercise agreement represents a significant capital structure adjustment with mixed implications for investors. The company is raising $3.1 million in gross proceeds through the exercise of approximately 4.2 million warrants at a reduced exercise price of $0.75 per share, down substantially from the original $1.44 price point.

The 48% reduction in exercise price below both the original warrant price and the current market price of $1.04 signals potential challenges in capital raising at higher valuation levels. This transaction creates immediate dilution for existing shareholders while establishing a lower price benchmark for the company's equity.

In exchange for the immediate exercise, reAlpha is issuing new unregistered warrants to purchase up to 8.4 million additional shares, also at the $0.75 exercise price. This creates a significant overhang of potential future dilution as these new warrants represent approximately 17.5% of the company's current market capitalization when fully exercised.

The stated use of proceeds for "general working capital purposes" rather than specific growth initiatives or investments suggests these funds may be directed toward operational needs. For a company with a relatively modest market cap of $48 million, this capital injection represents about 6.5% of its current value.

While the cash infusion strengthens reAlpha's balance sheet in the near term, the pricing terms and structure of this financing raise questions about the company's capital formation strategy and current valuation outlook.

DUBLIN, Ohio, April 07, 2025 (GLOBE NEWSWIRE) -- reAlpha Tech Corp. (Nasdaq: AIRE) (the 鈥淐ompany鈥� or 鈥渞eAlpha鈥�), a real estate technology company developing and commercializing artificial intelligence (鈥淎I鈥�) technologies, today announced the entry into definitive agreements for the immediate exercise of certain outstanding warrants to purchase up to an aggregate of 4,218,751 shares of common stock of the Company originally issued in November 2023, having an exercise price of $1.44 per share, at a reduced exercise price of $0.75 per share. The shares of common stock issuable upon exercise of the warrants are registered pursuant to an effective registration statement on Form S-3 (No. 333-284234). The gross proceeds to the Company from the exercise of the warrants are expected to be approximately $3.1 million, prior to deducting placement agent fees and estimated offering expenses.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

In consideration for the immediate exercise of the warrants for cash, the Company will issue new unregistered warrants to purchase up to 8,437,502 shares of common stock. The new warrants will have an exercise price of $0.75 per share, will be exercisable beginning on the effective date of stockholder approval of the issuance of the shares issuable upon exercise of the new warrants and will expire on November 24, 2028.

The offering is expected to close on or about April 8, 2025, subject to satisfaction of customary closing conditions. The Company intends to use the net proceeds from the offering for general working capital purposes.

The new warrants described above were offered in a private placement pursuant to an applicable exemption from the registration requirements of the Securities Act of 1933, as amended (the 鈥�1933 Act鈥�) and, along with the shares of common stock issuable upon their exercise, have not been registered under the 1933 Act, and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (鈥淪EC鈥�) or an applicable exemption from such registration requirements. The Company has agreed to file a registration statement with the SEC covering the resale of the shares of common stock issuable upon exercise of the new warrants.

In connection with the offering, the Company is reducing the exercise price for all outstanding November 2023 warrants to purchase 8,333,333 shares of common stock, including the November 2023 warrants to purchase up to 4,218,751 shares of common stock referred to above, such that all outstanding November 2023 warrants have a reduced exercise price of $0.75 per share.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About reAlpha Tech Corp.

reAlpha Tech Corp. (Nasdaq: AIRE) is a real estate technology company developing an end-to-end commission-free homebuying platform. Utilizing the power of AI and an acquisition-led growth strategy, reAlpha鈥檚 goal is to offer a more affordable, streamlined experience for those on the journey to homeownership. For more information, visit www.realpha.com.

Forward-Looking Statements

The information in this press release includes 鈥渇orward-looking statements.鈥� Any statements other than statements of historical fact contained herein, including statements as to the completion of the offering, the satisfaction of customary closing conditions related to the offering, the receipt of stockholder approval and the intended use of net proceeds from the offering, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as 鈥渕ay鈥�, 鈥渟hould鈥�, 鈥渃ould鈥�, 鈥渕ight鈥�, 鈥減lan鈥�, 鈥減ossible鈥�, 鈥減roject鈥�, 鈥渟trive鈥�, 鈥渂udget鈥�, 鈥渇orecast鈥�, 鈥渆xpect鈥�, 鈥渋ntend鈥�, 鈥渨ill鈥�, 鈥渆stimate鈥�, 鈥渁nticipate鈥�, 鈥渂elieve鈥�, 鈥減redict鈥�, 鈥減otential鈥� or 鈥渃ontinue鈥�, or the negatives of these terms or variations of them or similar terminology. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: reAlpha鈥檚 ability to pay contractual obligations; reAlpha鈥檚 liquidity, operating performance, cash flow and ability to secure adequate financing; reAlpha鈥檚 limited operating history and that reAlpha has not yet fully developed its AI-based technologies; whether reAlpha鈥檚 technology and products will be accepted and adopted by its customers and intended users; reAlpha鈥檚 ability to commercialize its developing AI-based technologies; reAlpha鈥檚 ability to successfully enter new geographic markets; reAlpha鈥檚 ability to integrate the business of its acquired companies into its existing business and the anticipated demand for such acquired companies鈥� services; reAlpha鈥檚 ability to scale its operational capabilities to expand into additional geographic markets and nationally; the potential loss of key employees of reAlpha and of its subsidiaries; the outcome of certain outstanding legal proceedings against reAlpha; reAlpha鈥檚 ability to obtain, and maintain, the required licenses to operate in the U.S. states in which it, or its subsidiaries, operate in, or intend to operate in; reAlpha鈥檚 ability to successfully identify and acquire companies that are complementary to its business model; reAlpha鈥檚 ability to commercialize its developing AI-based technologies; the inability to maintain and strengthen reAlpha鈥檚 brand and reputation; any accidents or incidents involving cybersecurity breaches and incidents; the inability to accurately forecast demand for short-term rentals and AI-based real estate-focused products; the inability to execute business objectives and growth strategies successfully or sustain reAlpha鈥檚 growth; the inability of reAlpha鈥檚 customers to pay for reAlpha鈥檚 services; the inability of reAlpha to obtain additional financing or access the capital markets to fund its ongoing operations on acceptable terms and conditions; the outcome of any legal proceedings that might be instituted against reAlpha; changes in applicable laws or regulations, and the impact of the regulatory environment and complexities with compliance related to such environment; and other risks and uncertainties indicated in reAlpha鈥檚 SEC filings. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Although reAlpha believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. reAlpha鈥檚 future results, level of activity, performance or achievements may differ materially from those contemplated, expressed or implied by the forward-looking statements, and there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking statements. For more information about the factors that could cause such differences, please refer to reAlpha鈥檚 filings with the SEC. Readers are cautioned not to put undue reliance on forward-looking statements, and reAlpha does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Investor Relations Contact:

Adele Carey, VP of Investor Relations
[email protected]

Media Contact:

Fatema Bhabrawala, Director of Public Relations
[email protected]


FAQ

What is the size of reAlpha Tech Corp's (AIRE) warrant exercise deal announced in April 2025?

The warrant exercise deal will generate $3.1 million in gross proceeds through the exercise of 4,218,751 warrants at $0.75 per share.

How many new warrants will AIRE issue in the April 2025 warrant exercise agreement?

AIRE will issue new unregistered warrants to purchase up to 8,437,502 shares at $0.75 per share, expiring November 24, 2028.

What is the reduced warrant exercise price for AIRE's November 2023 warrants?

The exercise price for all outstanding November 2023 warrants has been reduced from $1.44 to $0.75 per share.

When will the new AIRE warrants become exercisable?

The new warrants will become exercisable upon receiving stockholder approval for the issuance of shares under the warrants.

How will reAlpha Tech Corp use the proceeds from the April 2025 warrant exercise?

The company plans to use the net proceeds for general working capital purposes.
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