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Nuburu Inc. hit with default notice, demands repayment

EditorAhmed Abdulazez Abdulkadir
Published 2024-12-22, 04:24 p/m
BURU
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Nuburu, headquartered in Centennial, Colorado, and incorporated in Delaware, is now faced with the immediate task of addressing this financial obligation. The company's response to this situation and its impact on its financial position will be followed closely by investors and market analysts.

InvestingPro subscribers can access 12 additional key insights about BURU's financial health and market performance, including detailed analysis of its debt structure and liquidity position. InvestingPro subscribers can access 12 additional key insights about BURU's financial health and market performance, including detailed analysis of its debt structure and liquidity position.

Nuburu, headquartered in Centennial, Colorado, and incorporated in Delaware, is now faced with the immediate task of addressing this financial obligation. The company's response to this situation and its impact on its financial position will be followed closely by investors and market analysts. InvestingPro subscribers can access 12 additional key insights about BURU's financial health and market performance, including detailed analysis of its debt structure and liquidity position.

The Senior Convertible Notes, which accrue interest at a rate of 7.0% annually, were scheduled for repayment by June 23, 2026, or upon an Event of Default. As of December 16, 2024, the outstanding principal amount on these notes was approximately $6.8 million.

The default notice issued by the lead investor also included a demand for payment, accelerating the company's repayment schedule. This action was taken in accordance with the terms set out in the Senior Convertible Notes, which define the circumstances under which an Event of Default can be declared.

Nuburu, headquartered in Centennial, Colorado, and incorporated in Delaware, is now faced with the immediate task of addressing this financial obligation. The company's response to this situation and its impact on its financial position will be followed closely by investors and market analysts.

This report is based on information from a press release statement filed with the Securities and Exchange Commission.

In other recent news, Nuburu, Inc. has made several significant developments. The company announced amendments to its bylaws to adjust the quorum requirement for shareholder meetings. This move is intended to facilitate the conduct of business, allowing meetings to proceed with a smaller number of shares represented.

Nuburu also experienced board changes with the resignation of two members, Lily Yan Hughes and Kristi Hummel. The company had to cancel a special meeting due to insufficient quorum, which was intended to discuss proposals for capital-raising. These proposals, including a plan to issue up to $35.0 million in securities through non-public offerings, are expected to be reintroduced at the annual meeting.

The company transitioned to a new Equity Line of Credit (ELOC) with Liqueous, involving an initial $3 million capital injection and weekly investments of $1.25 million until an additional $10 million is invested. It also announced a 1-for-40 reverse stock split, a strategic move delayed due to a backlog at the Financial Industry Regulatory Authority.

Nuburu launched the AO-650 laser and the BLTM series, secured an $850,000 Phase II contract from NASA, and received a $3 million investment in its common stock from strategic investors, led by Alessandro Zamboni, Chairman of the AvantGarde Group S.p.A.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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