Arbe Robotics has requested bondholder approval to extend the deadline for meeting the conditions of its Series A convertible bonds from December 31 2025 to December 31 2026. The extension would postpone the release of the $8.5 million of proceeds held by the trustee until the end of 2026, giving the company additional time to secure the three conditions required to unlock the escrowed funds.
The company also proposes to lower the bond’s interest rate from 6.5 % to 4.35 % effective January 1 2026. The reduction would cut annual interest expense by roughly $300,000 on the current principal and would provide a modest but meaningful cash‑flow benefit as the company continues to invest in production ramp‑up and market expansion.
The convertible bonds remain convertible at a price of ILS 9.53 (about $2.95) per share. If the proposal is approved, Arbe may issue additional Series A bonds to bring the outstanding principal to up to $20 million, a near‑doubling of the current exposure. The company’s cash balance of $52.6 million as of September 30 2025 gives it a comfortable runway, but the extension is driven by the need to secure a strategic program award with a European OEM that was expected to trigger one of the escrow conditions.
The three conditions that must be met for the trustee to release the proceeds are: (1) winning a tender for imaging radar chips from a major automotive manufacturer; (2) maintaining a Nasdaq share price of at least $3.10 for 30 consecutive trading days with sufficient volume; and (3) closing at $3.10 on the verification date. The company’s current share price is below the $3.10 threshold, and the lack of a recent OEM award has made it unlikely that the first condition will be satisfied before the original deadline.
The extension request reflects Arbe’s broader 2026 goals, which include scaling production of its ultra‑high‑resolution radar platform, expanding into defense and maritime markets, and securing additional automotive design wins. The company’s management has emphasized that the extended timeline will allow it to focus on securing the necessary contracts without depleting cash reserves or diluting equity prematurely.
The bondholder meeting is scheduled for December 16 2025. Approval would provide Arbe with breathing room to meet its milestones, while the interest‑rate cut would reduce debt servicing costs and improve cash‑flow flexibility. The proposal is a significant financing development that could shape the company’s balance sheet and capital structure in the coming year.
The decision to extend the bond milestones and lower the interest rate underscores the challenges Arbe faces in securing key automotive contracts and meeting share‑price targets. By extending the deadline, the company preserves its ability to invest in production and market expansion while mitigating the risk of forced dilution or liquidity shortfalls. The proposal also signals management’s confidence that the company can achieve its 2026 objectives with the additional time and reduced financing cost.
The outcome of the bondholder vote will be closely watched by investors, as it will determine whether Arbe can maintain its current capital structure and continue to pursue its growth strategy without additional equity dilution or a sharp increase in debt servicing costs.
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