Palladyne AI Corp. (NASDAQ:PDYN) ("Palladyne AI"), a developer of artificial intelligence software for robotic platforms in the commercial and defense sectors, today announced that it has entered into a securities purchase agreement with a single institutional investor for the issuance and sale of 2,790,700 shares of its common stock (the "shares") in a registered direct offering at a purchase price of $2.15 per share. In a concurrent private placement, the Company also agreed to issue to the same investor warrants to purchase up to 2,790,700 shares of common stock (the "common warrants"). The common warrants have an exercise price of $2.30 per share, will be exercisable commencing six months from the date of issuance, and will expire five and one-half years following the date of issuance.

In a separate concurrent private placement, the Chief Executive Officer and certain other members of the board of directors of the Company (the "Insiders") purchased 430,105 shares of common stock at a price per share of $2.20 per share, which represents the consolidated closing bid price on October 30, 2024, and common warrants to purchase up to 430,105 shares of common stock. These common warrants were purchased at a price of $0.125 per common warrant, have an exercise price of $2.30 per share, will be exercisable commencing six months from the date of issuance, and will expire five and one-half years following the date of issuance.

The gross proceeds from the offerings, before deducting the placement agent's fees and other offering expenses, are expected to be approximately $7 million. Palladyne AI expects to use the net proceeds from the offerings for general corporate purposes and working capital, including funding continued development and commercialization of our software products.

A.G.P./Alliance Global Partners is acting as sole placement agent for the offerings. The offerings are expected to close on or about November 1, 2024, subject to the satisfaction of customary closing conditions.