Innoviz secures $40 million in registered direct offering

TEL AVIV - Innoviz Technologies Ltd. (NASDAQ: INVZ), a prominent supplier of LiDAR sensors and perception software for the automotive industry, has secured approximately $40 million through a registered direct offering. According to InvestingPro data, the company holds more cash than debt and maintains a healthy current ratio of 3.64x, though it’s currently experiencing rapid cash burn. The company announced on Monday the sale of over 28 million units at $1.39 each to certain institutional investors. These units include one ordinary share and a warrant to purchase additional shares at $1.69, exercisable immediately and valid for five years.

The transaction, which involves the issuance of shares and warrants separately, is slated to conclude on Tuesday, subject to standard closing conditions. WestPark Capital, Inc. is the exclusive placement agent for this offering.

Innoviz plans to allocate the proceeds from this offering for general business purposes. According to a statement, the company, which operates globally and supplies leading automotive manufacturers, aims to enhance road safety by advancing autonomous vehicle technology with its high-performance LiDAR and software that surpasses human visual capabilities.

This offering follows a registration statement filed with the U.S. Securities and Exchange Commission, which became effective on October 11, 2022. The sale is being conducted by prospectus, details of which can be accessed through the SEC’s website or directly from WestPark Capital, Inc.

The press release included forward-looking statements regarding the offering’s completion and the anticipated use of proceeds, emphasizing that actual outcomes could vary due to market conditions and other factors.

Innoviz’s announcement is based on a press release statement and is intended to inform investors of the company’s latest financial maneuver, without suggesting any broader industry implications or trends.

In other recent news, Innoviz Technologies has announced a strategic realignment to hasten its journey toward profitability, which includes a 9% workforce reduction and cost savings of about $12 million annually starting from the first quarter of 2025. In collaboration with NVIDIA (NASDAQ:NVDA), Innoviz also showcased its LiDAR sensors and perception software at CES 2025, highlighting advancements in AI-enabled perception systems for vehicles. Moreover, Innoviz has successfully regained compliance with Nasdaq’s minimum bid price requirement, providing assurance to investors and stakeholders about the company’s listing status.

In an analyst note from Rosenblatt Securities, Innoviz’s shares were upgraded from Neutral to Buy, citing the company’s significant relationships with major Original Equipment Manufacturers (OEMs) and the cost-effective nature of its LiDAR technologies. The analyst also projected 2025 as a pivotal year for Innoviz, as it transitions from the Non-Recurring Engineering (NRE) and prototype stage to volume production in 2026. However, Cantor Fitzgerald has downgraded Innoviz’s stock to Neutral, following the company’s recent third-quarter earnings call, citing tempered revenue forecasts and a slower-than-anticipated increase in product shipments.

These recent developments underscore Innoviz’s ongoing efforts to streamline operations, advance autonomous driving technology, and navigate the financial landscape.

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