CENTENNIAL, CO - Nuburu, Inc. (NYSE American: BURU), a Delaware-based company specializing in electrical machinery and equipment, announced today the cancellation of its previously scheduled special meeting of stockholders due to a lack of quorum. The meeting, which was initially set for September 30, 2024, aimed to seek approval for two key proposals critical to the company's capital-raising efforts.
The first proposal involved obtaining stockholder consent to issue common stock beyond the 19.99% threshold, which is a requirement under NYSE American listing rules, for the conversion of certain convertible notes.
The second proposal sought approval to issue up to $35.0 million in securities through one or more non-public offerings, potentially at a discount of up to 30% below the market price of the company's common stock.
The lack of a quorum, which is the minimum number of shares present or represented to legally conduct the meeting, led to the adjournment and subsequent cancellation of the special meeting. As a result, the proposals outlined in the definitive proxy statement filed on August 30, 2024, have been withdrawn from stockholder consideration.
Nuburu, Inc. has indicated that these proposals are essential for raising the necessary working capital to support its business plans and continue its progress toward commercialization. Despite securing interested investors and the required financing, the company cannot proceed with the financing in full without stockholder approval.
The company plans to reintroduce these proposals at its annual meeting of stockholders, with the proxy statement anticipated to be filed by October 31, 2024. This step reflects Nuburu's ongoing efforts to navigate the challenges of capital raising and underscores the importance of stockholder participation in corporate governance.
This news is based on a press release statement.
In other recent news, NUBURU, Inc. has been active in implementing strategic financial moves. The company canceled a Special Proxy Statement due to insufficient proxy submissions, a decision that will see the proposals initially set for the meeting included in the annual meeting proxy statement.
This comes as NUBURU transitions to a new Equity Line of Credit (ELOC) with Liqueous, terminating its previous arrangement with Lincoln Park. The company has also secured a strategic financing framework with Liqueous LP, which includes an initial $3 million capital injection and weekly investments of $1.25 million until an additional $10 million is invested.
NUBURU has announced a 1-for-40 reverse stock split, a strategic move aimed at increasing its stock trading price and attracting larger investors. This, however, has been delayed due to a backlog at the Financial Industry Regulatory Authority (FINRA). The company has also launched the AO-650 laser and the BLTM series and secured an $850,000 Phase II contract from NASA to enhance its high-power industrial blue laser technology.
On the investment front, NUBURU has received a $3 million investment in its common stock from strategic investors, led by Alessandro Zamboni, Chairman of the AvantGarde Group S.p.A.
These recent developments highlight the company's ongoing efforts to expand operations and increase market presence.
InvestingPro Insights
Recent data from InvestingPro sheds light on Nuburu's (NYSE American: BURU) financial situation, providing context to the company's urgent need for capital. With a market capitalization of just $4.2 million and a revenue of $0.7 million in the last twelve months as of Q2 2024, Nuburu is operating on a very small scale. The company's financial health appears precarious, as evidenced by several InvestingPro Tips.
InvestingPro Tips indicate that Nuburu is "quickly burning through cash" and "may have trouble making interest payments on debt." These insights align with the company's pressing need to raise capital, as outlined in the article. Additionally, the tip suggesting that "short term obligations exceed liquid assets" further underscores the urgency of the proposed financing measures.
The company's stock has shown significant volatility, with a strong return of 151.43% over the last month, but a dramatic decline of 90.61% over the past year. This volatility, combined with the fact that Nuburu is "not profitable over the last twelve months," highlights the challenges the company faces in attracting investor support for its proposals.
Investors seeking a more comprehensive analysis can access 13 additional InvestingPro Tips for Nuburu, providing a deeper understanding of the company's financial position and market performance.
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