REDMOND, WA / ACCESSWIRE / October 15, 2024 / MicroVision, Inc. (NASDAQ:MVIS), a leader in MEMS-based solid-state automotive lidar and ADAS solutions, today announced that it has strengthened its financial position by closing on a two-year $75 million senior secured convertible note facility with High Trail Capital.
“We are excited to announce this financing, which comes at an ideal time for MicroVision as we work toward securing additional revenue opportunities for 2025 and beyond with our integrated lidar hardware and software solution by advancing potential partnerships with multiple leading industrial customers in the heavy equipment segment,” said Sumit Sharma, Chief Executive Officer. “This is a very exciting time as we gear up to start a new chapter at MicroVision and focus on volume ramp of our industrial MOVIA L technology solution. We appreciate this opportunity to secure funding and build a relationship with High Trail as a strong financial partner.”
Continued Sharma, “With our MAVIN and MOVIA S products, we remain actively engaged with global automotive OEMs in seven high-volume RFQs and custom development explorations for future passenger vehicle programs. With the size, power, and specifications of our lidar, combined with our integrated perception software, I believe we remain the solution frontrunner with automotive OEMs. Given automotive OEMs’ latest start-of-production timelines, the opportunity to ramp up significant recurring revenues in 2025 with our industrial customers puts MicroVision in the best position in the marketplace. We remain the only multifaceted company with potential for significant revenues from industrial starting now with much higher volume automotive revenues in the coming years.”
“We are pleased to have secured attractive financing for MicroVision, having engaged in a competitive selection process while remaining attuned to recent dynamics in the automotive industry and lidar sector,” said Anubhav Verma, Chief Financial Officer. “The new convertible debt facility provides flexibility and a compelling overall cost of capital to MicroVision. We believe that having a strong balance sheet and a new strategic financing partner helps to competitively position the Company in today’s marketplace. With this new financing from a well-regarded institution, we have embarked on a new phase of MicroVision’s journey and we believe that the Company is positioned to capitalize on current opportunities in the U.S. and European lidar markets.”
Continued Verma, “We continue to remain disciplined with our existing ATM program with no capital raised in the third quarter 2024. Our cash burn has steadily improved sequentially for the first three quarters of 2024. The closing of this financing not only extends our runway through 2026, but also provides more flexibility to opportunistically raise equity capital through the ATM program. We ended the third quarter with $43 million in cash and cash equivalents and, after giving effect to the net proceeds from the first $45 million tranche of the financing transaction, we expect to have approximately $81 million in cash and cash equivalents. Additionally, the Company has access to approximately $153 million of additional capital, including $123 million under our existing ATM and the $30 million remaining commitment pursuant to the convertible debt facility. Now, with a stronger balance sheet and financial partner, we believe we are very well positioned to win customers and build long-term value for our shareholders.”
