Luminar Transaction Upsized and Closed at $625 Million; Stock Buyback Plan Increased to Over $300 Million
December 23 2021 - 12:15PM
Business Wire
Net Cash to Accelerate Growth and Expansion
from Major Commercial Wins
Luminar Technologies, Inc. (Nasdaq: LAZR) today announced the
successful execution of its previously announced transaction, with
the intent to purchase shares and accelerate growth. The deal was
oversubscribed based on positive institutional investor support,
and upsized to a total of $625 million in gross proceeds. Luminar
expects to use over $300 million of the proceeds for LAZR share
purchases, while the remaining capital will bolster Luminar’s
balance sheet.
“We have more conviction than ever in our market leadership and
business trajectory, and are opportunistically capitalizing on what
we believe to be a substantially undervalued and volatile share
price,” said Tom Fennimore, Chief Financial Officer of Luminar.
“The net proceeds raised from the private convertible bond will be
invested to accelerate our growth, and our share buyback is
designed to offset future dilution. Doubling-down on Luminar’s
future, we also purchased a sizable call option overlay at an
approximate $30 per share strike price. That’s an easy bet!”
Luminar intends to use the net proceeds to accelerate business
growth including: series production capacity expansion, new
commercial wins, technology roadmap advancement, international
expansion, and accelerating software development. Luminar remains
on track to enter the series production phase by the end of
2022.
In addition to the company, all members of Luminar’s board and
eligible management have now acquired or filed trading plans to
acquire additional LAZR shares.
About Luminar
Luminar Technologies, Inc. (Nasdaq: LAZR) is transforming
automotive safety and autonomy by delivering lidar and associated
software that meets the industry’s stringent performance, safety,
and economic requirements. Luminar has rapidly gained over 50
industry partners, including a majority of the top global
automotive OEMs. In 2020, Luminar signed the industry’s first
production deal for autonomous consumer vehicles with Volvo Cars,
which now expects to make Luminar’s technology part of the standard
safety package on their next generation electric SUV. Additional
customer wins include SAIC, Daimler Truck AG, Intel’s Mobileye,
Pony.ai and Airbus UpNext. Founded in 2012, Luminar employs
approximately 400 with offices in Palo Alto, Orlando, Colorado
Springs, Detroit, and Munich.
Forward-Looking Statements
Certain statements included in this press release that are not
historical facts are forward-looking statements for purposes of the
safe harbor provisions under the Private Securities Litigation
Reform Act of 1995. Forward-looking statements generally are
accompanied by words such as “aims”, “believe,” “may,” “will,”
“estimate,” “set,” “continue,” “towards,” “anticipate,” “intend,”
“expect,” “should,” “would,” “forward,” and similar expressions
that predict or indicate future events or trends or that are not
statements of historical matters. These forward-looking statements
include, but are not limited to, statements regarding our
expectations regarding repurchases of our Class A common stock
under the stock repurchase program, our long-term growth potential,
the value of our Class A common stock and our ability to invest to
accelerate and extend our technology and market position. These
statements are based on various assumptions, whether or not
identified in this press release, and on the current expectations
of Luminar’s management and are not predictions of actual
performance. Forward-looking statements are subject to a number of
risks and uncertainties, including but not limited to fluctuations
in our stock price, the fluctuations in the trading volume of our
stock, the nature of other investments or strategic opportunities
presented to us from time to time, our cash flows from operations;
changes in market conditions; or other risks, that could cause
actual results to differ materially from the forward-looking
statements including the risks discussed under the heading “Risk
Factors” in the Annual Report on Form 10-K filed by Luminar on
April 14, 2021, and other documents Luminar files with the SEC in
the future. You are cautioned not to place undue reliance upon any
forward-looking statements, which speak only as of the date made
and Luminar undertakes no obligation to update any forward-looking
statement to reflect events or circumstances after the date of this
press release.
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version on businesswire.com: https://www.businesswire.com/news/home/20211223005320/en/
Media Relations: Press@luminartech.com
Investor Relations: Trey Campbell
trey.campbell@luminartech.com
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