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08 Oct 2024
Developer of blue industrial lasers to receive weekly capital infusion and access to $50M credit line.
Nuburu, the Colorado-based company specializing in blue industrial lasers, has agreed a new funding arrangement said to be worth up to $65 million.
In a deal with Delaware hedge fund Liqueous LP, which describes itself as providing “bespoke liquidity solutions”, Nuburu is set to receive an initial $3 million with immediate effect, followed by $1.25 million in weekly instalments to provide another $10 million.
In addition to the acquisition of pre-funded warrants, the agreement provides for $50 million under what Liqueous calls its unique “equity line of credit” facility.
Balance sheet
Cash-strapped Nuburu has been exploring its fundraising options for the past year, initially securing a $5.5 million bridging loan in November 2023. In April it announced $3 million via the combination of a strategic investment and customer purchase orders.
Nuburu’s 2023 annual report revealed that the company posted an operating loss of nearly $22 million on sales revenues of just over $2 million. Its most recent quarterly report filing showed cash and equivalents totalling barely more than $100,000, as of June 30.
The firm said that the Liqueous funding represented a “pivotal moment”, enabling it to accelerate commercialization with predictable access to capital.
In an accompanying announcement from Liqueous, Nuburu CEO Brian Knaley - who replaced company co-founder Mark Zediker last year - described the deal as a “significant step forward”.
“This financing continues our commitment to strengthening our balance sheet and financial position and underscores the confidence Liqueous has in our groundbreaking technology and our ability to transform key industries,” he added.
“The fact that this financing comes with favorable terms and limited dilution is a testament to the value both sides see in our long-term potential.”
Absorption advantage
According to Liqueous the agreed deal mitigates stock dilution through pre-funded warrants that are executed at market prices at the time of investment, allowing for potential price appreciation and flexibility across each tranche.
“Nuburu’s recent contracts with NASA, along with its pioneering blue laser technology and key clients including the US Air Force, demonstrate the company’s growing market presence in industries that require precision and high-speed processing, such as space exploration and aerospace,” it added.
Nuburu has pioneered the development of diode-based blue industrial lasers, which are designed to exploit the significantly higher absorption of metals - in particular colored metals like copper - at shorter wavelengths of light.
The technology promises to be advantageous across of number of industrial applications, with electric vehicle battery welding and additive manufacturing among the most likely beneficiaries.
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