Richtech Robotics retreats after stock sale following Microsoft partnership

Shares of Richtech Robotics RR.O down 10.4% to $4.95 on Weds after it raises equity on heels of announcing partnership with Microsoft MSFT.O

AI-driven service robots provider early Weds said it sold 8.5 mln shares to an institutional investor in private placement for gross proceeds of approx $38.7 mln

Sale price equates to about $4.55

RR shares on Tues surged ~45% on heavy volume to close at $5.51 after Las Vegas, Nevada-based firm announced collaboration with MSFT to improve its robots

RR plans to use net offering proceeds for working capital, general purposes, including further product candidate development, procurement of inventory for robotic hardware

For fiscal year ending Sept 30, co reported revenue of about $5.05 mln and net loss of $15.8 mln

With the move on the session, RR shares up ~52% this year and up about 80% over the past 12 months