reAlpha Tech Corp. Announces Immediate Exercise of Outstanding Warrants
DUBLIN, Ohio, April 07, 2025 – reAlpha Tech Corp. (Nasdaq: AIRE), a real estate technology company developing and commercializing artificial intelligence (AI) technologies, has announced the entry into definitive agreements for the immediate exercise of certain outstanding warrants to purchase up to 4,218,751 shares of common stock. The warrants were originally issued in November 2023 with an exercise price of $1.44 per share, which has been reduced to $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 were offered in a private placement pursuant to an applicable exemption from the registration requirements of the Securities Act of 1933, as amended (the “1933 Act”). 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 to $0.75 per share.
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’s 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
This press release includes “forward-looking statements.” Any statements other than statements of historical fact contained herein are forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, reAlpha’s ability to pay contractual obligations, liquidity, operating performance, and other risks and uncertainties indicated in reAlpha’s SEC filings. 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, except as required by law.
Investor and Media Contacts
For more information, please contact:
- Adele Carey, VP of Investor Relations: investorrelations@realpha.com
- Fatema Bhabrawala, Director of Public Relations: fbhabrawala@allianceadvisors.com
