Since removing shares of Richtech Robotics (RR) at the end of the June 2024 quarter, I haven’t really paid much attention to it. Here’s a link to the original story in case you may have an interest in some history and background on the company and some of the characters involved.
Now that we are in the midst of an everything-goes-up-regardless-of-how-crappy moment in the market, names like Richtech Robotics are once again finding a bid, one which is allowing them to raise gobs of money like there’s no tomorrow.
When I first pointed out shares of RR back in January 2024 they were trading in the $8 range; back then there were about 44M class “A” shares (10 votes for each of these) and 20M “B” shares outstanding, giving the company a market cap in the $500M range.
Today (well, as of August 28th) we find that there are around 40M “A” shares and 121M “B” shares giving today’s $5.54 stock a market cap in the $900M range.
This increase was something of a surprise to me; a company issuing around 100M “B” shares over an 18 month period of time is fairly typical for companies on the verge of bankruptcy, and fairly atypical for companies entering some sort of a growth cycle. Besides, if you look at that linked prospectus for $100M in additional shares, the overall share count may actually be as high as 152M “B” shares, which may give these folks a market cap in the $1BN range.
If you figure that revenues today are actually lower than they were a year ago, I consider it to be quite the accomplishment for this Vegas-based crappy little purveyor of coffee-dispensing, floor sweeping, and service delivery robots.
So I thought it might be worthwhile to take another look and see what they’ve been up to…