Luminar secures up to $200M following CEO departure and layoffs
Summary
Lidar company Luminar reached a deal with Yorkville Advisors Global and an unnamed investor that could bring another $200 million into its coffers through the sale of convertible preferred stock over an 18-month period. The company also launched another round of layoffs its third since spring 2024.Under the terms, Luminar will issue $35 million in convertible preferred stock to the investors. Luminar may issue additional tranches in amounts of up to $35 million no more than every 60 days at a purchase price equal to 96% of the stated value of the convertible preferred stock. Weve made substantial progress in extending our liquidity runway with our restructuring efforts, and the additional capital available to us under this facility provides us with another tool to realize our long-term value.The company said proceeds from the initial $35 million issuance are expected to be used for general corporate purposes and debt retirement.Yorkville has offered these lifelines to other struggling publicly traded companies, a list that includes failed Lordstown Motors, Faraday Future, and the now bankrupt Canoo.Luminar was founded by Russell in 2012 when he was just a teenager. Luminar, and Russell, became Silicon Valley darlings when the lidar startup broke cover in April 2017 after operating for years in secrecy and at the height of the autonomous vehicle technology hype cycle.In 2021, Luminar merged with special purpose acquisition company Gores Metropoulos Inc., with a post-deal market valuation of $3.4 billion.