Knightscope (NASDAQ:KSCP) shares tumbled more than 30% intraday in the high-profile security-robotics maker’s market debut Thursday following a Nasdaq IPO.
KSCP shares last changed hands at $6.93 at approximately 2:15 p.m. ET, down 31% from its $10 IPO price. The stock opened at $14.44 and rose as high as $15.48 before switching gears and falling into the red. The stock’s intraday low by mid-afternoon was $6.30.
Mountain View, Calif.-based Knightscope (KSCP) develops autonomous security robots, or ASRs, for indoor and outdoor surveillance use at places like shopping malls. It currently offers three ASR models: the K1, K3 and K5. A fourth model, the K7, is under development for outdoor multi-terrain use.
The company operates on a “Machine-as-a-Service” model, whereby clients rent ASRs for a monthly fee that also includes various maintenance, software and data services.
Knightscope said in a release on Jan. 26 that it had raised $22.4M through the sale of 2.2M shares.
In a filing made on Jan. 25, Knightscope said that it planned to offer up to 4M Class A common shares at $10 per share.
Digital Offering LLC served as lead selling agent for the deal. Knightsbridge said in its filing that it paid the firm a 7% commission on sales of the shares.
The company also heavily advertised both its products and its pre-IPO stock over the years through TV spots.
However, Knightscope (KSCP) wrote in its filing that it has yet to turn a profit. For the six months ended June 30, 2021, the firm reported a net loss of $22.7M on revenue of $1.8M, compared with a net loss of $9.1M on revenue of $1.6M:
In an unusual term for initial public offerings, KSCP wrote in its filing that “generally no sale may be made to you in this offering if the aggregate purchase price you pay is more than 10% of the greater of your annual income or net worth. Different rules apply to accredited investors and non-natural persons.”
The company said that proceeds from the IPO will be used to fund further development and the manufacture of its K1, K3 and K5 ASR models.
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