reAlpha Tech Enters Sales Agreement for At-the-Market Offering with A.G.P./Alliance Global Partners

reAlpha Tech Corp. (NASDAQ: AIRE) recently disclosed in a Form 8-K filing with the Securities and Exchange Commission (SEC) that on December 19, 2024, it entered into an At the Market Sales Agreement with A.G.P./Alliance Global Partners (A.G.P.). This agreement enables reAlpha Tech to offer and sell its common stock, referred to as Placement Shares, with an aggregate offering price of up to $4,750,000 through A.G.P., acting as the sales agent.

The Placement Shares to be issued are in accordance with reAlpha Tech’s shelf registration statement on Form S-3 (File No. 333-283284) that was filed with the SEC on November 15, 2024, and declared effective on November 26, 2024. A prospectus supplement dated December 19, 2024, was also filed with the SEC in connection with the offer and sale of the Placement Shares.

Notably, there is no minimum offering amount required under the Sales Agreement, meaning the total number of Placement Shares to be sold and the proceeds generated are not currently determinable. reAlpha Tech anticipates utilizing any proceeds from this offering for working capital and general corporate purposes, including debt repayment, potential acquisitions, capital expenditures, and adhering to its cryptocurrency investment policy.

As part of the Sales Agreement, reAlpha Tech will determine the sale parameters, such as the number or dollar amount of Placement Shares, the timeframe for sales, limitations on sales per Trading Day, and minimum prices for sales, not falling below $5.00 per Placement Share. Sales will be conducted through methods permitted by law under an “at-the-market offering” as defined in Rule 415(a)(4) of the Securities Act of 1933.

A.G.P. will receive a cash commission equal to 3.0% of the total gross proceeds from the sale of Placement Shares. Additionally, A.G.P. will be reimbursed for specific expenses related to the offering, including legal fees, out-of-pocket costs, and expenses for due diligence reviews. Furthermore, reAlpha Tech has agreed to indemnify A.G.P. against designated liabilities outlined in the Sales Agreement.

The offering of the Placement Shares under the Sales Agreement is subject to termination upon the earliest occurrence of specific events listed in the agreement. Both reAlpha Tech and A.G.P. hold the right to terminate the Sales Agreement with a five days’ prior notice period.

For full details regarding the Sales Agreement, including representations, warranties, and covenants, interested parties are advised to consult the complete text of the agreement in the associated SEC filing. Furthermore, a legal opinion from Mitchell Silberberg & Knupp LLP related to the Placement Shares is accessible as part of the filing.

This article is a summary based on the information provided in the 8-K filing submitted by reAlpha Tech Corp. to the SEC.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read reAlpha Tech’s 8K filing here.

reAlpha Tech Company Profile

reAlpha Tech Corp., a real estate technology company, commercializes artificial intelligence (AI)-powered technologies. The company operates in two segments, Platform Services and Rental Business. The company offers and develops AI-based products and services to customers in the real-estate industry.