Presto Raises Capital from Remus Investor Group, Announces Addition of Two Board Members, and Significant Cost Reductions
17 Novembro 2023 - 11:52AM
Presto Automation Inc. (NASDAQ: PRST), one of the largest
AI and automation technology providers to the restaurant industry,
today announced it had entered into agreements with a Remus
Capital-affiliated syndicate of investors to sell 7,000,000 shares
of common stock of the company in a registered offering that the
company anticipates will result in gross proceeds of approximately
$7.0 million. This capital comes in addition to the previously
disclosed $3 million invested by Cleveland Avenue, founded by Don
Thompson, the former CEO of McDonald’s Corporation, and a $3
million upsize of the company’s existing credit facility with
Metropolitan Partners Group. As part of the transaction, Remus
Capital has appointed two additional directors to Presto's Board of
Directors. Northland Capital Markets, Chardan, and The
Benchmark Company are acting as the placement agents for the
offering.
Presto also announced today that it would take further steps in
its ongoing efforts to reduce costs, improve profitability, and
streamline operations by implementing a reduction in force of its
global full-time employee base by approximately 17%. The
Company estimates that this initiative, along with other
cost-saving initiatives, will reduce monthly expenditures by
approximately $0.4 million, rising to approximately $1.2 million
after approximately eight months.
“This equity commitment by a group of sophisticated investors
demonstrates the strength of our strategic plans and market
position,” said Xavier Casanova, CEO of Presto. “This funding,
along with our efficiency initiatives, will enable us to continue
leaning into the growth we are experiencing in our Presto
Voice AI platform and will support our ability to maximize
shareholder value with Presto Touch. We recently announced we have
$17M of revenue opportunity at franchisee customers that are part
of restaurant groups with signed MSAs or pilots and $100M of
revenue opportunity at brands with signed MSAs or pilots; we intend
to use this capital toward capturing that opportunity.”
“I have greater conviction in Presto than I've ever had before,
as AI and automation technology gains significant traction
among restaurant operators,” said Krishna Gupta, Chairman of Presto
and CEO of Remus Capital. “The market is shifting from a ‘lead
adopter’ to a ‘fast follower’ one, which fuels our optimism about
Presto’s near and long-term growth prospects. We believe this
transaction – done without warrants in this macroeconomic climate –
should give the market confidence as we continue to unlock value in
both Presto Voice and Presto Touch.”
Remus is also appointing two additional individuals to the
board: Tewfik Cassis, who was the first investor in Presto
alongside Mr. Gupta, and Sasha Hoffman, another individual Presto
investor and long-time business associate of Mr. Gupta’s. Both Mr.
Cassis and Ms. Hoffman are entrepreneurial operators who will add
significant product, technology, and financial expertise gained
across their careers – Mr. Cassis at Facebook and McKinsey, and Ms.
Hoffman at Uber and Goldman Sachs.
“I am delighted to make these additions to the board. I am
confident that, as shareholders themselves, they will augment the
board’s focus on maximizing shareholder value. Their appointment
will also make Presto’s board 50% diverse; I believe having
additional diversity of perspective and experience should further
enable the Company’s success.” said Mr. Gupta.
The offering also includes the issuance to a Remus
Capital-affiliated investor who led the investment round of an
additional 750,000 shares, for a total of 7,750,000 shares issued
in the offering, which together with 3,000,000 shares included
above lowers its cost basis in our stock to approximately
$3.00.
About PrestoPresto (Nasdaq: PRST) provides
enterprise-grade AI and automation solutions to the restaurant
enterprise technology industry. Our solutions are designed to
decrease labor costs, improve staff productivity, increase revenue,
and enhance the guest experience. We offer our AI solution, Presto
Voice, to quick service restaurants (QSR) and our pay-at-table
tablet solution, Presto Touch, to casual dining chains. Some of the
most recognized restaurant names in the United States are among our
customers, including Carl’s Jr., Hardee’s, and Checkers for Presto
Voice and Applebee’s, Chili’s, and Red Lobster for Presto
Touch.
About Remus CapitalRemus Capital is an
early-stage venture capital firm that helps build, not bet on,
companies transforming massive industries. Founded in an MIT dorm
room during the Great Recession, Remus has helped build industry
leaders across multiple sectors, with a focus on companies in
applied AI and healthcare: two of the greatest value drivers of the
next decade. Learn more at remuscap.com.
ContactInvestors:investor@presto.com
Media:Brian Rubymedia@presto.com
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