CENTENNIAL, Colo. - NUBURU, Inc. (NYSE American: BURU), known for its industrial blue laser technology, has announced a reverse stock split scheduled for June 24, 2024, in a statement today. The company's CEO, Brian Knaley, communicated the 1-for-40 reverse stock split as a strategic move to uphold the company's listing on the New York Stock Exchange (NYSE) by meeting the minimum price requirements.
Trading on a split-adjusted basis is expected to commence on June 25, 2024, under the new CUSIP number 67021W301.
This corporate action aims to attract institutional investors and analysts by increasing the stock's price and reducing the number of outstanding shares, without altering the company's fundamental value or shareholders' proportional ownership.
Additionally, NUBURU has been working on debt reduction, having already cut its outstanding debt by 25%. The company is also actively pursuing transactions to further decrease its debt and has secured ongoing funding relationships crucial for its growth.
NUBURU has been refocusing its business operations, which has led to increased orders and prestigious recognitions. The company's recent product launches include the AO-650 laser and the BLTM series, with models like the BL-250 and the BL-1Kw aimed at meeting the demands of wire stripping, medical device, and personal electronic applications. The company plans to concentrate on manufacturing and shipping the BL series, particularly the BL250 model, in the latter half of 2024.
The company's technology, which is particularly efficient at welding and 3D printing applications for metals like copper and aluminum, is designed to improve productivity and cost efficiency for manufacturers across various industries, including e-mobility, consumer electronics, aerospace, defense, and 3D printing.
The CEO's shareholder letter also highlights NUBURU's commitment to sustainability, noting that their blue laser technology can reduce carbon emissions by more efficiently coupling heat into materials. The company's extensive patent portfolio covers applications and technologies in blue laser and 3D printing, indicating a focus on innovation and intellectual property.
For sales and marketing, NUBURU relies on both its own sales force and third-party distributors to reach customers in key territories. The company acknowledges the long sales cycle, typically 18-24 months from initial contact to purchase order, and anticipates scaling up its manufacturing workforce to meet the growing demand for its blue laser systems.
The information provided in this article is based on a press release statement from NUBURU, Inc.
In other recent news, NUBURU, Inc. has been making significant strides in its business operations. The company has secured an $850,000 Phase II contract from NASA to enhance its high-power industrial blue laser technology. This technology is aimed at streamlining power management for lunar and Martian missions, replacing traditional power grids in extraterrestrial environments. The advancement is expected to address power management challenges for both space exploration and terrestrial applications.
In another development, NUBURU has announced a $3 million investment in its common stock by strategic investors, led by Alessandro Zamboni, Chairman of the AvantGarde Group S.p.A. The investment is intended to support the company's growth and expedite the process towards consistent revenue generation. Additionally, NUBURU has received initial purchase orders from new customers in emerging markets, including an order to supply its BL-300 lasers to a leading battery systems manufacturer for the sustainable energy sector.
InvestingPro Insights
In light of NUBURU, Inc.'s (NYSE American: BURU) recent announcement of a reverse stock split, investors may be evaluating the company's financial health and market performance. The following insights from InvestingPro provide a snapshot of the company's current financial metrics and challenges:
InvestingPro Data indicates that NUBURU has a market capitalization of $5.63 million, reflecting the company's size and market value. The data also reveals a negative Price to Earnings (P/E) ratio of -0.24, which suggests that the company has been unprofitable over the last twelve months as of Q1 2024. Additionally, the company's revenue has seen a decrease of 6.12% during the same period, highlighting potential concerns about its growth trajectory.
InvestingPro Tips highlight that NUBURU operates with a significant debt burden and may have trouble making interest payments on its debt. This is particularly relevant given the company's recent efforts to reduce outstanding debt by 25%. Furthermore, the company's stock price has fallen significantly over the last year, with a one-year price total return of -81.04%, indicating a period of poor performance for investors.
NUBURU's strategic initiatives, such as pursuing transactions to decrease its debt and securing ongoing funding relationships, are crucial steps in addressing these financial challenges. However, the company's financial metrics underscore the importance of closely monitoring its operational efficiency and market position.
For investors seeking more comprehensive analysis and additional insights, InvestingPro offers a full suite of InvestingPro Tips for NUBURU, Inc., which can be found at https://www.investing.com/pro/BURU. There are a total of 14 InvestingPro Tips available, providing a deeper dive into the company's financial health and stock performance. To access these valuable insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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