Knightscope, Raising Capital On StartEngine, Scheduled To Close Crowdfunding Today, NASDAQ Listing Later This Month
Summary
Knightscope, the firm that has developed the security robots that is promoting the company everywhere, is raising capital on StartEngine and the funding round is scheduled to close tonight. There are some broker dealers that are engaged in the sale which means there may be a path to purchase shares until January 20th.It is important to know that Knightscope intends to float its shares on the NASDAQ under ticker symbol KSCP on January 27, 2022 thus providing investors with near-term liquidity if they want to trade their shares.Knightscope is raising capital using Reg A+, a crowdfunding exemption that allows a company to raise up to $75 million. In effect, if you invest you are betting the share price will move higher over time giving it a valuation over the pre-money plus money raised.If Knightscope raises its target amount of $40 million, the use of funds is expected to be as follows: Approximately $15,000,000 of the net proceeds will be used for new technology development, to fund additional product development of new versions of the ASRs, technological upgrades, systems, and process improvements. Approximately $15,000,000 of the net proceeds will be used to fund the manufacture of additional K1, K3, and K5 ASRs and related investments in SG&A to support the expansion nationwide. Approximately $6,000,000 of the net proceeds will be used for SG&A, a portion of which may be used to pay employee and executive compensation.The balance of the funds will cover the issuance costs.Knightscope has raised capital multiple times in the past, including several crowdfunding rounds.