Mobix Labs Sweetens Offer to Acquire Peraso
Last Friday, Mobix Labs (MOBX) announced that the company has “enhanced its proposal to acquire Peraso (PRSO) by adding a cash component to its original all-stock offer.” Details were sparce, however, with neither a specific purchase price nor the proposed mix of cash and stock referenced in the press release. We note that Mobix recently shored up its balance sheet with $4.5 million in gross proceeds after an existing warrant holder agreed to immediately exercise certain of its warrants. While a cash component does provide greater certainty of value to existing Peraso shareholders, the ensuing outflow would leave the combined company capital constrained, in our opinion. As such, we struggle to see how that would be any more beneficial to Peraso’s shareholders given that MOBX shares would likely remain a significant component of the compensation received. Beyond that, Mobix still appears unwilling to participate in Peraso’s formal review of strategic alternatives. We therefore continue to view a transaction with Mobix as an improbable outcome.
All that said, the timing of the revised offer appears fortuitous as Peraso also received a notice from Nasdaq last week indicating that the company is no longer compliant with its minimum bid price requirement. Although Peraso has 180 calendar days to regain compliance, the ensuing surge in shares of PRSO following Mobix’s revised offer could enable the company to regain compliance much sooner if the stock price remains above $1.00 per share for 10 consecutive business days. Additionally, the higher stock price could potentially provide for more attractive terms should Peraso pursue alternative financing transactions in lieu of a sale as part of its strategic review. Our price target remains $2.50 based on a FY ’26 EV/Sales multiple of 1x.
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Disclosure(s):
K. Liu & Company LLC (“the firm”) receives or intends to seek compensation from the companies covered in its research reports. The firm has received compensation from Peraso Inc. (PRSO) in the past 12 months for “Sponsored Research.”
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