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Dubai's Robo.ai Rules Out New Variable-Price Equity Deals as 1-for-25 Reverse Split Starts

In a shareholder letter, chief executive Benjamin Zhai cited revenue of more than $280 million for June to September and said quarterly results would now speak for the company.

By Nakoda News Desk

·2 min read

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Robo.ai, the Dubai-based, Nasdaq-listed AI and industrial group, said it does not intend to enter into new equity-linked, variable-price financing for a period after its chief executive's letter to shareholders, published on Thursday. That type of funding has weighed on many small-cap stocks.

The letter from chief executive Benjamin Zhai, issued as a press release, came on the day the company's shares began trading on a split-adjusted basis. According to an earlier company release filed with the US Securities and Exchange Commission, shareholders approved a 1-for-25 reverse split of all classes of ordinary shares, effective 6 November. That release put the post-split share count at 552,701 Class A and 8,884,684 Class B shares. The Class B shares trade under the ticker AIIO.

The financing pledge matters for existing shareholders. In variable-price arrangements, the price at which new shares are issued or notes convert follows the future market price, which can dilute holders heavily when a stock falls. The letter did not say how long the pause would last. The company said it would continue to honour, and keep its rights under, agreements it has already disclosed.

Zhai wrote that revenue exceeded $280 million for June through September. He repeated the company's preliminary full-year 2026 revenue outlook of about $600 million, first given in October, and acknowledged that revenue alone does not show profitability or positive operating cash flow. "From here, our quarterly results will speak for us," he wrote.

The letter set out four priorities. Existing operations will focus on delivery costs, cash collection and efficiency. Neurovia AI, a subsidiary that develops software to make visual data cheaper to transmit and store, will push product development and sales. ALIF Holding, the group's UAE industrial arm, will work on production readiness and customer development. Capital will be spent in step with operating plans. ALIF broke ground on the first phase of an industrial park in Umm Al Quwain on 25 September.

In August, the company reported that it had moved from a shareholders' deficit of $116.1 million at the end of 2025 to shareholders' equity of $95.8 million at 30 June. Neurovia AI is due to exhibit at GITEX Global in Dubai from 7 to 11 December.

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TagsCompaniesFinanceTechnologyManufacturingUAE

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