Arbe Robotics closes a $15 million share sale to fund automotive radar and a move into defence

Arbe Robotics, the Tel Aviv company that develops high-resolution imaging radar, closed on 28 September 2026 an underwritten registered direct offering with gross proceeds of about $15 million, three days after announcing it.

The company sold 833,334 ordinary shares at $0.60 each and pre-funded warrants for up to 24,166,666 shares at $0.5999 each, with an exercise price of $0.0001. The warrants can be exercised immediately and do not expire until they are used. Almost all of the capital therefore comes through warrants rather than shares issued at once. The deal was led by AWM Investment Company, which manages the Special Situations Funds, together with another institutional investor; Canaccord Genuity was sole bookrunner. The securities were sold under an F-3 registration statement effective since June 2025.

Arbe says the net proceeds will fund working capital and the growth of its operations. It names three uses: the recent selection of its radar for a level 3 automated driving programme of one of the world's largest car groups, the planned entry into defence and counter-drone markets, and possible acquisitions. The company, listed on Nasdaq and on the Tel Aviv Stock Exchange under the ARBE ticker, also has offices in the United States, Germany and China.

The price per share, well below one dollar, and the recourse to a direct offering rather than a broader placement point to a small company that needs capital to reach production volumes with carmakers. According to Investing.com, the shares fell by about 5.5% on the day the closing was announced.

The move into defence follows a path already taken by other sensor makers born in the automotive sector: counter-drone systems use the same ability to detect small objects at long range, and public buyers pay faster than car programmes, which take years to go from selection to series production.