Kopin secures $41 million investment from strategic partners

WESTBOROUGH, Mass. - Kopin Corporation (NASDAQ:KOPN), a developer of optical systems and microdisplays whose stock has surged over 220% in the past year according to InvestingPro data, announced Monday it has secured approximately $41 million in private investment financing from Theon International, Ondas Holdings, and Unusual Machines.

The company will issue 19,545,950 shares of common stock at $2.10 per share to the investors. The transaction is expected to close pending customary closing conditions. Based on InvestingPro analysis, Kopin currently appears overvalued relative to its Fair Value, with the stock showing significant volatility and a beta of 2.96.

Kopin plans to use the proceeds to advance development of its color MicroLED technology, NeuralDisplay Artificial Intelligence, and commercialization of microdisplays and optical solutions for drone applications, according to the company. The investment comes as Kopin maintains a strong balance sheet with more cash than debt, though InvestingPro data shows the company faces challenges with weak gross profit margins of 20% and negative EBITDA of $13.6 million in the last twelve months.

The investment represents strategic alignment with key industry partners. Nikos Vasiliadis, Director of Electronics Engineering at THEON, cited confidence in Kopin’s color MicroLED technology and growth potential in the defense sector as reasons for their participation.

Eric Brock, Chairman and CEO of Ondas Holdings, noted that Kopin’s optical display solutions deliver "performance, durability, and cost efficiency demanded by next-generation security systems."

Allan Evans, CEO of Unusual Machines, referenced a historical partnership where their Fat Shark goggles exclusively used Kopin panels, stating their investment aims to "onshore and scale FPV headset production."

Erich Manz, Kopin’s Chief Financial Officer, described the transaction as a "targeted partnership with investors who share our long-term vision."

Stifel acted as exclusive financial advisor and lead placement agent, with Craig-Hallum serving as co-placement agent.

The securities being issued have not been registered under the Securities Act of 1933 and cannot be offered or sold in the United States except through an effective registration statement or exemption. Kopin has agreed to file a registration statement with the SEC for the resale of the shares.

This information is based on a press release statement from the company. For deeper insights into Kopin’s financial health, valuation metrics, and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.

In other recent news, Kopin Corporation reported second-quarter 2025 results that did not meet expectations. The company posted an earnings per share (EPS) of -$0.03, missing the anticipated -$0.01. Revenue also fell short, reaching $8.45 million, which is 32.83% below the forecasted $12.58 million. In a positive development, Kopin secured a $15.4 million contract from the U.S. Department of Defense to develop MicroLED displays for military augmented reality applications. Additionally, Kopin received a follow-on production contract valued at approximately $9 million for thermal imaging systems. Canaccord Genuity raised its price target for Kopin to $3.00 from $2.50, maintaining a Buy rating. The upgrade was attributed to improved growth and margin prospects following an investment from Theon International. These recent developments highlight Kopin’s ongoing engagements and financial challenges.

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