Presto Automation Inc. (NASDAQ:PRST), one of the largest drive-thru automation technology providers in the hospitality industry, today announced it had entered into commitments for an approximately $10 million common equity PIPE. In parallel, Presto has negotiated certain changes to its credit facility with its lender, Metropolitan Partners Group (MetPG), including a decrease of the minimum cash covenant to $10 million effective upon the closing of the PIPE. The PIPE is expected to close on or around May 24, 2023. Chardan served as financial advisor to Presto.
“We believe that entering into a PIPE without warrants from both existing and new investors, as well as effectively aligning our lender to the equity upside of our business signals the confidence investors have in Presto’s ability to immediately seize this exciting market opportunity,” said Krishna Gupta, Chairman and Interim CEO of Presto. “This funding will enable us to continue leaning into the growth we are experiencing in our Presto VoiceTM AI platform, as well as support the commercialization of our next-generation Flex product platform.”
Presto is an enterprise AI company with more than a decade of experience operationalizing technology in large nationwide restaurant chains. Presto recently announced an expansion partnership with CKE Restaurants, parent of Carl’s Jr and Hardee’s, to uses Presto VoiceTM to automate participating drive-thrus across the United States. CKE joins Checkers and Del Taco as leading customers of Presto Voice™. Presto Voice™ uses advanced AI techniques, including large language models (LLM), to accurately take orders from customers in a conversational manner, leading to labor savings and higher revenue for restaurant customers.
