NUBURU Secures Strategic $65 Million Funding Program to Accelerate Commercialization, Including $15 Million PIPE Investment & $50M Equity Line of Credit

Rhea-AI Summary

NUBURU, Inc. (NYSE American: BURU), a leader in high-power industrial blue laser technology, has secured a $65 million funding program to accelerate commercialization. The program includes a $15 million direct investment and a $50 million equity line of credit. Key components of the deal with Liqueous LP include:

1. An immediate $3 million capital infusion at current market price
2. Weekly infusions of $1.25 million until an additional $10 million is invested
3. Acquisition and conversion of outstanding notes
4. Adjustment of pre-funded warrants worth $2.2 million
5. Implementation of a $50 million equity line of credit

NUBURU's technology is protected by 233 patents and has applications in both public and private sectors, with strategic partnerships including NASA and the U.S. Air Force. This funding aims to support long-term, sustainable growth and advance the company's IP portfolio.

Positive

• Secured $65 million funding program for commercialization acceleration
• Immediate $3 million capital infusion at current market price
• Weekly infusions of $1.25 million up to an additional $10 million
• $50 million equity line of credit established
• 233 patents protecting the company's blue laser technology
• Strategic partnerships with NASA and U.S. Air Force

Negative

• Potential dilution of existing shareholders due to new stock issuances
• 8% annual interest rate on optional $2.5M convertible note
• 10% discount on conversion rate for the optional convertible note

Insights

Financial Analyst

This $65 million funding program is a significant development for NUBURU, a small-cap company with a market cap of only $1.82 million. The deal structure is complex but strategic, comprising:

• A $15 million direct investment (PIPE)
• A $50 million equity line of credit (ELOC)

The immediate $3 million capital infusion at market price, followed by weekly $1.25 million investments up to $10 million, provides important short-term liquidity. The $50 million ELOC offers long-term financial flexibility, essential for R&D and commercialization efforts in the competitive laser technology sector.

However, investors should note the potential dilution risk, with safeguards limiting the investor's ownership to 4.99% and total issuance to 19.9% of outstanding shares without shareholder approval. The convertible note option within the ELOC, while providing quick access to $2.5 million, comes at a 10% discount to market price, which could pressure the stock.

Overall, this funding significantly improves NUBURU's financial position, potentially accelerating its path to commercialization and market penetration in the industrial blue laser technology space.

Tech Expert

NUBURU's blue laser technology represents a significant advancement in industrial laser applications. With 233 patents, their IP portfolio is robust, indicating a strong competitive moat in the high-power, high-brightness laser market. The company's partnerships with NASA and the U.S. Air Force validate the technology's potential in both commercial and defense sectors.

Blue lasers offer several advantages over traditional infrared lasers, including:

• Higher absorption in metals, leading to more efficient welding and cutting
• Improved precision due to shorter wavelengths
• Potential for new applications in 3D printing and battery manufacturing

The $65 million funding program is important for NUBURU to transition from R&D to full-scale commercialization. This capital could accelerate product development, expand manufacturing capabilities and fund marketing efforts to penetrate key industrial markets.

However, the laser industry is highly competitive, with established players like IPG Photonics and Coherent. NUBURU must leverage its technological edge to capture market share quickly. The funding provides the resources to do so, but execution will be key in translating their innovation into market success.

CENTENNIAL, Colo.--(BUSINESS WIRE)-- NUBURU, Inc. (“NUBURU” or the “Company”) (NYSE American: BURU), a leading innovator in high-power and high-brightness industrial blue laser technology, today announced a comprehensive funding program of approximately $65 million, including $15 million of direct investment and $50 million equity line of credit. This funding represents a pivotal moment for NUBURU, enabling us to accelerate commercialization with predictable access to capital.

Investment Summary:

On October 1, 2024, NUBURU, Inc. (the “Company”) entered into a master transaction terms agreement (the “Master Agreement”) with Liqueous LP, a Delaware limited partnership (the “Investor”) pursuant to which, the Company and the Investor established a strategic financing framework for short-term and long-term financing for the Company. The Master Agreement provides for: (i) an immediate capital infusion from the Investor of $3 million at current market price, (ii) subsequent weekly capital infusions of $1,250,000 at market price until an additional $10 million has been invested; (iii) the acquisition and conversion of certain outstanding notes; (iv) an adjustment to current market price of certain outstanding pre-funded warrants held by the Investor having a current cash value of approximately $2.2 million; and (v) the implementation of a $50 million equity line of credit (the “ELOC”) pursuant to which the Company may require the Investor to purchase common stock from time-to-time in the amounts and for the prices determined in accordance with the terms of the ELOC which includes an optional advancement of $2.5M through a convertible note with an 8% annual interest rate and with a conversion rate at a 10% discount to the lower of the previous day’s closing price or the prior five-day average. No issuances pursuant to the financing plan will be made to the extent such issuances would: (a) cause the Investor to hold greater that 4.99% at any time; or (b) result in the issuance of greater than 19.9% of the Company’s outstanding common stock, unless any stockholder approval that is required under NYSE American rules is first obtained.

Strategic Partnerships and Technology Leadership:

Our innovative blue laser technology is protected by 233 patents and includes both public and private sector applications. Our strategic partnerships include past and active contracts with NASA and the U.S. Air force all which validate our innovations and underscore the value of our technology.

Long-Term Growth Alignment:

This financing provides both an immediate capital infusion and access to a long-term capital facility to support our strategic goal of long-term, sustainable growth. These infusions, combined with our robust IP portfolio, position us to achieve commercialization and continue to advance and expand our IP portfolio.

About NUBURU

Founded in 2015, NUBURU, Inc. (NYSEAM: BURU) is a developer and manufacturer of industrial blue lasers that leverage fundamental physics and its high-brightness, high-power design to produce higher quality welds and parts at a faster rate than current lasers can produce for laser welding and additive manufacturing of copper, gold, aluminum and other industrially important metals. NUBURU’s industrial blue lasers produce minimal to defect-free welds at a rate that is up to eight times faster than traditional welding methods — all with the flexibility inherent to laser processing. For more information, please visit www.nuburu.net.

Forward-Looking Statements

This press release contains certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including relating to its partnership with GE Additive. All statements other than statements of historical fact contained in this press release may be forward-looking statements. Some of these forward-looking statements can be identified by the use of forward-looking words, including “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “plan,” “seek,” “targets,” “projects,” “could,” “would,” “continue,” “forecast” or the negatives of these terms or variations of them or similar expressions. Forward-looking statements in this press release include, among other things: anticipated benefits associated with laser-based additive manufacturing. All forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. All forward-looking statements are based upon estimates, forecasts and assumptions that, while considered reasonable by NUBURU and its management, are inherently uncertain and many factors may cause the company’s actual results to differ materially from current expectations which include, but are not limited to: (1) the ability to continue to meet the security exchange’s listing standards; (2) failure to achieve expectations regarding its product development and pipeline; (3) the inability to access sufficient capital to operate as anticipated; (4) the inability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, the ability of the company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (5) changes in applicable laws or regulations; (6) the possibility that NUBURU may be adversely affected by other economic, business and/or competitive factors; (7) volatility in the financial system and markets caused by geopolitical and economic factors; (8) failing to realize benefits from the partnership with GE Additive; and (9) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in NUBURU’s most recent periodic report on Form 10-K or Form 10-Q and other documents filed with the Securities and Exchange Commission from time to time. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. NUBURU does not give any assurance that it will achieve its expected results. NUBURU assumes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241007686318/en/

Investor Relations:

NUBURU, Inc.

ir@nuburu.net

(720) 767-1400

Source: NUBURU, Inc.

FAQ

What is the total value of NUBURU's new funding program announced on October 1, 2024?

NUBURU announced a comprehensive funding program of approximately $65 million, including $15 million of direct investment and a $50 million equity line of credit.

How much immediate capital infusion will NUBURU (BURU) receive from the investor?

NUBURU will receive an immediate capital infusion of $3 million at the current market price from the investor.

What is the structure of the weekly capital infusions for NUBURU (BURU)?

NUBURU will receive subsequent weekly capital infusions of $1,250,000 at market price until an additional $10 million has been invested.

How many patents does NUBURU (BURU) have for its blue laser technology?

NUBURU's blue laser technology is protected by 233 patents.

What are some of NUBURU's (BURU) strategic partnerships mentioned in the press release?

NUBURU's strategic partnerships include past and active contracts with NASA and the U.S. Air Force.