Kopin sets public offering at $0.65 per share

WESTBOROUGH, Mass. - Kopin Corporation (NASDAQ:KOPN), a developer of high-performance microdisplays and optical systems, has announced a public offering of 37,550,000 shares of common stock priced at $0.65 each. Alongside the common stock, Kopin is also offering pre-funded warrants to purchase an additional 4,000,000 shares at $0.64 per warrant, which is the public offering price minus the $0.01 exercise price per share. The company expects to raise approximately $27 million before fees and expenses, not including any proceeds from the exercise of the pre-funded warrants.

The underwriters have been granted a 30-day option to purchase up to an extra 6,232,500 shares at the public offering price, with discounts and commissions subtracted. The offering's closing is anticipated on or about September 23, 2024, pending customary closing conditions.

Kopin plans to allocate the net proceeds for general corporate purposes, which include working capital, research and development, capital expenditures, and potential costs related to pending litigation judgments or appeals.

Canaccord Genuity is serving as the sole book-running manager for the offering, with Lake Street Capital Markets acting as the co-manager. The offering is made through a prospectus supplement and an accompanying base prospectus, part of a registration statement filed with the SEC on September 20, 2024. Interested parties can obtain these documents from the SEC's EDGAR website or directly from Canaccord Genuity.

This press release does not serve as an offer to sell or a solicitation to buy securities, and any sales will be conducted only through the prospectus supplement and accompanying base prospectus.

Kopin's portfolio includes a range of display technologies and optical solutions for a variety of markets, such as defense and consumer products. The company's product offerings include Active Matrix Liquid Crystal displays, Ferroelectric Liquid Crystal on Silicon displays, MicroLED displays, and Organic Light Emitting Diode displays.

The information in this article is based on a press release statement from Kopin Corporation.

In other recent news, Kopin Corporation has announced a public offering of its common stock and pre-funded warrants, with Canaccord Genuity serving as the sole bookrunner. The proceeds are intended for general corporate purposes, including research and development. In product updates, Kopin introduced its new SXGA-R15 drive board for 3D Automated Optical Inspection (AOI) machines and secured a $2 million order from Collins Aerospace for active-matrix liquid crystal displays used in F-35 Lightning II fighter jets. The company also received its first production purchase order for the 2K-R11 FLCoS Spatial Light Modulator system.

Kopin's financial performance for Q1 2024 revealed a 7% decrease in total revenues, amounting to $10 million, and a net loss of $32.5 million. Despite these figures, the company has a backlog exceeding $55 million for 2024 and beyond. Analysts from Lake Street Capital Markets maintained their Buy rating on Kopin.

In governance developments, Kopin added Paul V. Walsh, Jr., a seasoned financial executive with semiconductor expertise, to its Board of Directors. The company has also regained compliance with the Nasdaq Capital Market's minimum bid price requirement. These are among the recent developments at Kopin Corporation.

InvestingPro Insights

As Kopin Corporation (NASDAQ:KOPN) positions itself for growth through its recent public stock offering, InvestingPro provides critical insights into the company's financial health and stock performance. With a market capitalization of $111.33 million, Kopin holds more cash than debt on its balance sheet, which can be a positive sign for investors looking for a stable financial base in the company they invest in. This aligns with the company's strategy to allocate net proceeds from the offering for general corporate purposes.

However, Kopin's challenges are evident in its financial metrics. The company's gross profit margin over the last twelve months as of Q2 2024 stands at 14.48%, reflecting weak gross profit margins as highlighted by one of the InvestingPro Tips. Additionally, Kopin's stock price has been quite volatile, with a significant 53.6% drop over the last six months, though it has seen a strong return of 28.02% in the last three months.

Investors should be aware of the company's short-term financial obligations, which exceed its liquid assets, and analysts do not expect Kopin to be profitable this year. These factors are critical when considering the potential risks and opportunities associated with Kopin's stock. For a deeper dive into Kopin's financial state and stock performance, investors can discover an additional 9 InvestingPro Tips at https://www.investing.com/pro/KOPN, providing a more comprehensive analysis to guide investment decisions.

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