Arbe Robotics has priced an underwritten registered direct offering expected to raise approximately $15 million in gross proceeds, selling ordinary shares at $0.60 each alongside pre-funded warrants covering up to 24.17 million additional shares. The Israeli radar technology company expects to receive about $13.8 million in net proceeds after underwriting discounts, commissions and estimated offering expenses.
The offering consists of 833,334 ordinary shares priced at $0.60 per share and pre-funded warrants to purchase up to 24,166,666 ordinary shares at $0.5999 per underlying share. The warrant price is effectively the $0.60 offering price less a $0.0001 exercise price. The warrants are immediately exercisable and remain exercisable until fully exercised, although holders are subject to beneficial-ownership limitations.
The prospectus supplement filed with the Securities and Exchange Commission on Sept. 28 shows total offering proceeds of $14.9976 million before expenses. Underwriting discounts and commissions are expected to total $900,000, leaving $14.0976 million before other offering expenses. Delivery of the securities was expected on or about Sept. 28, subject to customary closing conditions, with Canaccord Genuity serving as sole bookrunner.
Arbe said it intends to use the net proceeds for working capital and general corporate purposes. Planned uses include scaling operations to support commercial opportunities, including a recently announced selection of its radar technology for an L3 passenger vehicle program at a major global automotive group, as well as expansion into defense and counter-drone markets and potential strategic mergers and acquisitions.
The financing comes as Arbe broadens its commercial focus beyond automotive programs. The company develops 4D imaging radar technology for driver-assistance and autonomous-driving applications, while also pursuing applications in defense, counter-drone systems and other markets with potentially shorter commercial adoption cycles.
The new securities will also increase the potential share count. Arbe said 128.14 million ordinary shares would be outstanding immediately after the offering assuming none of the new pre-funded warrants are exercised. If all 24.17 million warrants were exercised, they would represent additional ordinary shares, although the prospectus notes that holders are subject to ownership limits that can restrict exercise.
The pre-funded warrants are not separately listed on Nasdaq, and Arbe does not expect an established trading market to develop for them. Each warrant carries a $0.0001 exercise price, meaning the company expects to receive only nominal additional proceeds when the warrants are exercised after the initial purchase price has already been paid.
The prospectus also highlights dilution considerations. Based on Arbe’s June 30 net tangible book value, the company estimated that the offering would raise adjusted net tangible book value per share from $0.32 to approximately $0.36 after giving effect to the transaction, while the prospectus calculated $0.24 of immediate dilution in net tangible book value per share for investors participating in the offering.
Arbe had $41.9 million in cash, cash equivalents and short-term bank deposits as of June 30, according to its second-quarter financial results. The company reaffirmed its 2026 revenue outlook of $4 million to $6 million and projected an adjusted EBITDA loss of $28 million to $31 million for the year.
The offering follows other recent financing-related actions by Arbe. On Sept. 25, the company also agreed to amend existing Tranche A and Tranche B warrants, reducing their exercise prices to $1.10 and $1.00, respectively, while extending their expiration dates. Those amendments were tied to participation in the new offering.
Arbe’s ordinary shares trade on Nasdaq under the ARBE symbol and on the Tel Aviv Stock Exchange under the same symbol. The company said the new financing is intended to provide additional capital as it scales its commercial operations and pursues opportunities across automotive radar, defense and counter-drone applications.
