Nauticus Robotics Debtholders Agree to Exchange $33M of Debt to Equity
Nauticus Robotics (NASDAQ: KITT) has secured an agreement with existing debtholders to convert $33M of debt into equity through a preferred stock exchange. The company expects this conversion to significantly reduce its balance sheet leverage and potentially resolve previously reported NASDAQ compliance issues. The existing convertible debenture will be exchanged for a new class of convertible preferred stock.
Nauticus Robotics (NASDAQ: KITT) ha raggiunto un accordo con i creditori esistenti per convertire $33 milioni di debito in capitale azionario tramite uno scambio di azioni privilegiate. L'azienda prevede che questa conversione ridurrà significativamente la leva finanziaria del suo bilancio e potenzialmente risolverà le questioni di conformità precedentemente riportate con il NASDAQ. Il debito convertibile esistente sarà scambiato con una nuova classe di azioni privilegiate convertibili.
Nauticus Robotics (NASDAQ: KITT) ha obtenido un acuerdo con los acreedores existentes para convertir 33 millones de dólares de deuda en capital a través de un intercambio de acciones preferentes. La empresa espera que esta conversión reduzca significativamente su apalancamiento en el balance y potencialmente resuelva los problemas de cumplimiento con NASDAQ que se habían informado anteriormente. La deuda convertible existente se intercambiará por una nueva clase de acciones preferentes convertibles.
노티쿠스 로보틱스 (NASDAQ: KITT)는 기존 채권자와의 계약을 통해 3,300만 달러의 부채를 우선주 교환을 통해 자본으로 전환하는 데 성공했습니다. 회사는 이 전환이 대차대조표의 레버리지를 크게 줄이고 NASDAQ 준수 문제를 잠재적으로 해결할 것으로 기대하고 있습니다. 기존의 전환사채는 새로운 종류의 전환 우선주로 교환될 것입니다.
Nauticus Robotics (NASDAQ: KITT) a conclu un accord avec ses créanciers existants pour convertir 33 millions de dollars de dettes en capitaux propres par le biais d'un échange d'actions privilégiées. L'entreprise s'attend à ce que cette conversion réduise considérablement l'effet de levier de son bilan et résolve potentiellement des problèmes de conformité avec le NASDAQ précédemment signalés. La debenture convertible existante sera échangée contre une nouvelle classe d'actions privilégiées convertibles.
Nauticus Robotics (NASDAQ: KITT) hat eine Vereinbarung mit den bestehenden Gläubigern getroffen, um 33 Millionen Dollar Schulden in Eigenkapital durch einen Austausch von Vorzugsaktien umzuwandeln. Das Unternehmen erwartet, dass diese Umwandlung die Verschuldung in der Bilanz erheblich reduzieren und möglicherweise zuvor gemeldete Compliance-Probleme mit NASDAQ lösen wird. Die bestehende wandelbare Anleihe wird gegen eine neue Klasse von wandelbaren Vorzugsaktien eingetauscht.
- Debt reduction of $33M through conversion to equity
- Potential resolution of NASDAQ compliance issues
- Balance sheet deleveraging
- Shareholder dilution due to debt-to-equity conversion
- Existing NASDAQ compliance issues
Insights
This debt-to-equity conversion represents a significant financial restructuring that substantially improves Nauticus Robotics' balance sheet health. Converting
- Immediate deleveraging of the balance sheet, improving financial flexibility
- Potential resolution of NASDAQ compliance concerns, reducing delisting risk
The conversion to preferred stock, while dilutive to existing shareholders, provides breathing room for operational execution without immediate debt service pressure. This restructuring suggests strong creditor confidence in the company's long-term prospects, as debtholders are willing to take an equity position rather than demand repayment.
The debt restructuring comes at a important time for Nauticus as the subsea robotics market shows growing demand. The company's focus on autonomous systems and AI-driven solutions positions it well in the evolving offshore industry. The improved balance sheet should enable Nauticus to:
- Accelerate development and deployment of its autonomous robot fleet
- Expand its service offering in the subsea infrastructure maintenance sector
- Invest in AI and software capabilities for third-party platform integration
The shift from debt to equity financing suggests management's confidence in achieving positive operational cash flow from their robotics-as-a-service model.
Nauticus Robotics, Inc. develops autonomous robots for the ocean industries. Autonomy requires the extensive use of sensors, artificial intelligence, and effective algorithms for perception and decision allowing the robot to adapt to changing environments. The company's business model includes using robotic systems for service, selling vehicles and components, and licensing of related software to both the commercial and defense business sectors. Nauticus has designed and is currently testing and certifying a new generation of vehicles to reduce operational cost and gather data to maintain and operate a wide variety of subsea infrastructure. Besides a standalone service offering and forward-facing products, Nauticus' approach to ocean robotics has also resulted in the development of a range of technology products for retrofit/upgrading traditional ROV operations and other third-party vehicle platforms. Nauticus' services provide customers with the necessary data collection, analytics, and subsea manipulation capabilities to support and maintain assets while reducing their operational footprint, operating cost, and greenhouse gas emissions, to improve offshore health, safety, and environmental exposure.
Cautionary Language Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Act"), and are intended to enjoy the protection of the safe harbor for forward-looking statements provided by the Act as well as protections afforded by other federal securities laws. Such forward-looking statements include but are not limited to: the expected timing of product commercialization or new product releases; customer interest in Nauticus' products; estimated operating results and use of cash; and Nauticus' use of and needs for capital. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events, or results of operations, are forward-looking statements. These statements may be preceded by, followed by, or include the words "believes," "estimates," "expects," "projects," "forecasts," "may," "will," "should," "seeks," "plans," "scheduled," "anticipates," "intends," or "continue" or similar expressions. Forward-looking statements inherently involve risks and uncertainties that may cause actual events, results, or performance to differ materially from those indicated by such statements. These forward-looking statements are based on Nauticus' management's current expectations and beliefs, as well as a number of assumptions concerning future events. There can be no assurance that the events, results, or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and Nauticus is not under any obligation and expressly disclaims any obligation, to update, alter, or otherwise revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports which Nauticus has filed or will file from time to time with the Securities and Exchange Commission (the "SEC") for a more complete discussion of the risks and uncertainties facing the Company and that could cause actual outcomes to be materially different from those indicated in the forward-looking statements made by the Company, in particular the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in documents filed from time to time with the SEC, including Nauticus' Annual Report on Form 10-K filed with the SEC on April 10, 2024. Should one or more of these risks, uncertainties, or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated, or expected. The documents filed by Nauticus with the SEC may be obtained free of charge at the SEC's website at www.sec.gov.
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SOURCE Nauticus Robotics, Inc.
FAQ
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