DUBLIN, Ohio, April 09, 2025 (GLOBE NEWSWIRE) -- reAlpha Tech Corp. (Nasdaq: AIRE) (the “Company” or “reAlpha”), a real estate technology company developing and commercializing artificial intelligence (“AI”) technologies, today announced the closing of its previously announced exercise of certain outstanding warrants to purchase up to an aggregate of 4,218,751 shares of common stock of the Company originally issued in November 2023, having an exercise price of $1.44 per share, at a reduced exercise price of ...

Core Viewpoint - reAlpha Tech Corp. has entered into agreements for the immediate exercise of outstanding warrants, allowing the purchase of up to 4,218,751 shares at a reduced price of $0.75 per share, generating approximately $3.1 million in gross proceeds for the company [1][3]. Group 1: Warrants and Share Issuance - The company is reducing the exercise price for all outstanding November 2023 warrants to $0.75 per share, which includes the warrants for 4,218,751 shares [5]. - In exchange for the immediate exercise of the warrants, the company will issue new unregistered warrants to purchase up to 8,437,502 shares at the same reduced price of $0.75 per share [2][5]. - The new warrants will be exercisable upon stockholder approval and will expire on November 24, 2028 [2]. Group 2: Financial Details and Use of Proceeds - The gross proceeds from the exercise of the warrants are expected to be approximately $3.1 million before deducting fees and expenses [1][3]. - The company intends to use the net proceeds from the offering for general working capital purposes [3]. Group 3: Regulatory and Compliance Information - The new warrants and shares are offered in a private placement and have not been registered under the Securities Act of 1933, requiring a registration statement for resale [4]. - The company has agreed to file a registration statement with the SEC covering the resale of shares issuable upon exercise of the new warrants [4]. Group 4: Company Overview - reAlpha Tech Corp. is a real estate technology company focused on developing an AI-driven, commission-free homebuying platform [7].

Core Insights - reAlpha Tech Corp. aims to become a leader in the real estate technology industry through strategic innovation and acquisitions, resulting in significant revenue growth in 2024 [2][3] Business Highlights - The company halted its short-term rental operations due to macroeconomic conditions, leading to a goodwill impairment of $17,337,739 related to Rhove, which is reflected as discontinued operations [3][4] - Revenue for the fiscal year ended December 31, 2024, was $948,420, marking a 270% increase from $256,436 in 2023, primarily driven by strategic acquisitions [4][6] - Cash and cash equivalents decreased to $3,123,530 as of December 31, 2024, from $6,456,370 in 2023 [5] - The net loss for the year was approximately $26.02 million, compared to a net loss of $2.46 million in 2023, largely due to the goodwill impairment and absence of a one-time gain from the sale of myAlphie [6][14] Operational Updates - The company launched the reAlpha platform in April 2024, designed to eliminate traditional commission fees in homebuying, powered by an AI real estate agent named Claire [7] - Acquisitions in 2024 included a controlling interest in Hyperfast Title, LLC, and an 85% stake in AiChat Pte. Ltd., enhancing AI capabilities and expanding market presence [7] - The reAlpha Super App was introduced in August 2024, allowing homebuyers to access AI-driven services directly from mobile devices [7] Financial Performance - Adjusted EBITDA for the year was $(5,572,214), an improvement from $(7,387,223) in 2023, indicating a reduction in operational losses [8][21] - Total assets decreased to $11,994,458 as of December 31, 2024, from $27,424,869 in 2023, reflecting the impact of discontinued operations [12][13] - The company reported a loss from discontinued operations of approximately $18.3 million for the year, compared to $0.31 million in 2023 [6][15]

Revenue Projections - Estimated total revenue for Q4 2024 is projected to be between $0.5 million and $0.6 million[4] - Estimated total revenue for the year ended December 31, 2024, is projected to be between $0.9 million and $1.0 million[4] Cash Position - Cash as of December 31, 2024, is approximately $3.1 million, a decrease of about $3.9 million from $7.0 million as of September 30, 2024[5] - The cash decrease was primarily due to a $1.5 million payment related to the acquisition of Debt Does Deals, LLC, d/b/a Be My Neighbor[5] - Increased operating expenses related to Be My Neighbor following its acquisition contributed to the cash decrease[5] Financial Data Disclaimer - The financial data presented is preliminary and unaudited, and actual results may differ materially[6] - The independent registered public accounting firm has not audited or reviewed the estimated preliminary financial data[6]

Business Model and Strategy - The reAlpha platform aims to provide a commission-free homebuying experience, integrating AI-driven tools for tailored property recommendations and mortgage services[24]. - The company has announced acquisitions of Naamche, AiChat, Hyperfast, and Be My Neighbor, which are expected to enhance revenue and operational capabilities[26]. - Following the acquisition of Be My Neighbor and GTG Financial, the in-house mortgage brokerage is now licensed to operate in 30 U.S. states[27]. - The reAlpha platform generates revenue through mortgage and title services, with plans to expand offerings through further acquisitions[31]. - The company aims to solidify its core business by acquiring proptech companies that enhance the reAlpha platform's capabilities in the homebuying process[51]. - The company has acquired multiple businesses, including Rhove, Naamche, AiChat, Hyperfast, Be My Neighbor, and GTG Financial, and may pursue further acquisitions[104]. - The company faces challenges in integrating acquired businesses, which could adversely affect its operations and financial condition[105]. Technology and Innovation - The technology services segment is the only reportable segment after discontinuing the rental business, focusing on AI-based products and services[29]. - GENA, an AI tool for generating personalized home descriptions, was released in November 2023 and is currently free for users[44]. - The company is focused on R&D and strategic acquisitions to enhance its technology offerings and expand its customer base in the proptech market[46]. - The company differentiates itself through AI integration and a commission-free model on the reAlpha platform, enhancing its competitive edge in the market[69]. - The company is integrating AI technologies into its platform, which presents operational, compliance, and reputational risks[171]. - The implementation of artificial intelligence (AI) may present significant operational risks and challenges, potentially impacting the company's business and financial condition[174]. - The company anticipates increased costs associated with compliance and the integration of AI technologies, which may affect profitability and operational efficiency[175]. Market and Economic Conditions - The global proptech market size reached $40.58 billion in 2024, projected to grow to $179.03 billion by 2034, indicating significant market potential[54]. - U.S. proptech companies saw $4.3 billion in growth equity and debt investments in 2024, with average investment size increasing by 64.19% from approximately $36.3 million to $59.6 million[55]. - The real estate market experienced a 3.9% year-over-year increase in U.S. home prices despite high mortgage rates averaging between 6% and 7%[59]. - Approximately $957 billion of commercial real estate debt is maturing in 2025, raising concerns about refinancing and potential defaults[65]. - The ongoing COVID-19 pandemic has led to economic uncertainty, affecting market conditions and potentially decreasing occupancy levels and pricing across the company's portfolio[125]. - Local conditions, such as recent hurricanes in Florida, may disproportionately affect demand and sales prices in key markets[169]. Financial Performance and Risks - For the year ended December 31, 2024, the company recorded a net loss of $25,802,444, which includes a loss of $18,339,635 from discontinued operations and a loss of $7,462,809 from continuing operations[99]. - The accumulated deficit as of December 31, 2024, was $37,984,426, with outstanding indebtedness of $5,976,689[99]. - The company experienced a net loss of $2,464,959 for the year ended December 31, 2023, including $316,904 from discontinued operations and $2,145,055 from continuing operations[99]. - The company faces significant regulatory compliance costs related to the SAFE Act and Dodd-Frank Act, impacting its mortgage loan origination business[82]. - The company faces substantial debt risks, including potential cash flow insufficiencies to meet principal and interest payments, which could lead to accelerated debt obligations[119]. - If the company cannot refinance its debt at maturity, it may need to raise additional capital or incur higher interest expenses, adversely affecting cash flows available for operations[120]. - The company has minimal operating capital and will depend on financing from equity sales or other alternatives to sustain operations[103]. Regulatory and Compliance Issues - The company is subject to various privacy and data protection laws, including the GLBA in the U.S. and GDPR in the EU, which may affect its operations[86][88]. - The company recognizes the evolving regulatory environment and allocates substantial resources to ensure compliance while meeting customer needs[85]. - Recent acquisitions in mortgage brokerage and title services expose the company to additional regulatory burdens and compliance costs under laws such as the GLBA and NY DFS Cybersecurity Regulation[122]. - The company is subject to increased regulatory scrutiny from the CFPB, which may raise compliance costs and influence the availability and cost of residential mortgage credit[126]. - The company must comply with domestic and international export controls, which could impair its ability to compete in international markets and result in penalties for non-compliance[131]. Corporate Governance and Management - Giri Devanur, the CEO, owns approximately 59.78% of the common stock, allowing him significant control over company decisions and board composition[196]. - The company does not have a majority of independent directors on its board, nor is it subject to certain corporate governance requirements[216]. - The board of directors has the authority to change significant corporate policies without stockholder approval, including investment and financing policies[224]. Human Resources and Operational Challenges - The company has 132 full-time employees across various regions, including 42 in the U.S., 56 in Nepal, 22 in Southeast Asia, and 12 in India[91]. - The company may face challenges in hiring and retaining qualified employees, which could adversely affect revenue growth[161]. - The company relies on key personnel from subsidiaries and partners, and the loss of these individuals could disrupt operations and negatively impact financial performance[134]. Stock and Capital Structure - The company has issued 14,063 shares of Series A Preferred Stock in connection with the acquisition of GTG Financial and 250,000 shares for the transaction with Mercurius Media Capital LP[208]. - Future capital needs may lead to additional dilution of existing stockholders' ownership if new equity securities are issued[206]. - The issuance of preferred stock could adversely affect the rights of common stockholders, including voting power and liquidation payments[210]. - The company may face delisting from Nasdaq if it fails to meet continued listing requirements, which could negatively impact stock price and capital raising efforts[215]. - The company has never declared or paid cash dividends on its common stock and does not anticipate doing so in the foreseeable future[217].

Core Viewpoint - reAlpha Tech Corp. has secured a strategic investment of $5 million from Mercurius Media Capital, aimed at enhancing its media and marketing outreach to expand its national brand presence in the U.S. housing market [1][2][3] Investment Details - The investment involves reAlpha issuing preferred stock to Mercurius in exchange for media credits valued at $5 million, priced at $20 per share [2] - Mercurius has the option to invest an additional $5 million under the same terms within two months, allowing reAlpha to further enhance its media strategy [2] Company Strategy and Market Position - reAlpha aims to leverage Mercurius' media expertise and extensive U.S. media network to increase brand visibility and consumer engagement [2] - The company is focused on providing cost-effective solutions in the $1.48 trillion U.S. housing market, where $100 billion in commissions are paid annually [3] - reAlpha is positioned to capitalize on the need for affordable homebuying solutions through its AI-driven, commission-free platform [4] Mercurius Media Capital Overview - Mercurius Media Capital is a media-for-equity venture fund with $87.5 million in committed capital, co-founded by experienced media professionals [5] - The fund partners with leading media platforms to provide advertising inventory in exchange for equity, supporting innovative businesses [6]

DUBLIN, Ohio, March 03, 2025 (GLOBE NEWSWIRE) -- reAlpha Tech Corp. ("reAlpha" or the "Company") (NASDAQ:AIRE), a real estate technology company developing and commercializing artificial intelligence ("AI") technologies, today announces that its subsidiary, AiChat Pte. Ltd. ("AiChat"), is launching its AI-powered digital agents (the "AI Agents"), further enhancing its intelligent customer engagement capabilities. Next-Generation AI Capabilities: Elevating Customer Experiences AiChat's AI Agents include Voic ...

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DUBLIN, Ohio, Feb. 24, 2025 (GLOBE NEWSWIRE) -- reAlpha Tech Corp. ("reAlpha") (NASDAQ:AIRE), a real estate technology company developing and commercializing artificial intelligence ("AI") technologies, today announced the acquisition of GTG Financial, Inc. ("GTG Financial"), a mortgage brokerage company founded by Glenn Groves, a U.S. Marine and industry leader. GTG Financial is licensed to operate in seven U.S. states, including California, which will expand reAlpha's geographic footprint to a total of 28 ...

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