Arrive AI Inc. (NASDAQ: ARAI) entered into a Securities Purchase Agreement on October 5, 2026, with an accredited investor to raise gross proceeds of $250,000 through a private placement.
Under the terms of the transaction, the company issued and sold 384,615 shares of common stock and a common stock purchase warrant to purchase an additional 384,615 shares of common stock. The purchase price was set at $0.65 per share and warrant unit.
The warrant is immediately exercisable at an exercise price of $0.70 per share and expires on October 5, 2031. The warrant allows for cashless exercises, where the holder receives a number of shares equal to the exercise quantity multiplied by 3.33, without paying the exercise price.
The transaction was conducted pursuant to a shelf registration statement on Form S-3 and is exempt from registration under Section 4(a)(2) of the Securities Act of 1933 and Rule 506 of Regulation D.
The company agreed to file a registration statement on Form S-3 within 20 days of the closing to cover the resale of the shares and the warrant shares.
Arrive AI intends to use the net proceeds from the financing for general working capital purposes.
In a press release dated October 6, 2026, the company noted that the investment represented a premium of approximately 213% to the company's recent trading price of $0.2075. The investor also expressed interest in evaluating up to $10 million in additional financing, subject to market conditions and regulatory requirements.
