Nauticus Robotics secures $250 million equity line for mineral exploration

HOUSTON - Nauticus Robotics, Inc. (NASDAQ:KITT), a subsea robotics company with a market capitalization of $8.77 million, announced Monday it has secured a $250 million Equity Line of Credit facility to fund strategic acquisitions and expand into deep-sea rare earth and mineral exploration. According to InvestingPro data, the company currently operates with significant debt obligations while rapidly consuming cash reserves.

The subsea robotics company plans to use the financing to acquire businesses and technologies that complement its autonomous systems portfolio while supporting exploration of rare earth elements and critical minerals in ultra-deepwater environments. While the company’s financial health score is currently rated as weak by InvestingPro, analysts project revenue growth of nearly 29% for the current fiscal year.

"Access to rare earth minerals is vital for the clean energy, electronics, and defense industries, and Nauticus is uniquely positioned to play a key role in enabling that supply chain," said John Gibson, President and CEO of Nauticus Robotics.

The company stated the initiative aligns with the Trump administration’s priorities on securing strategic minerals to reduce reliance on international producers. Gibson brings over 10 years of experience in critical mineral production from his previous work with Orocobre Ltd., which the company claims will translate to the subsea mining space.

Nauticus develops autonomous robots for ocean industries, using sensors, artificial intelligence, and algorithms that allow robots to adapt to changing environments. The company’s business model includes robotic services, vehicle sales, and software licensing across commercial and defense sectors.

The announcement follows Nauticus’ recent acquisition of SeaTrepid International, which expanded its subsea service and remotely operated vehicle capabilities.

The company indicated it will provide updates on prospective acquisition targets and strategic partnerships as it advances its plans for autonomous, data-driven exploration of ocean mineral resources, according to the press release statement. Despite current challenges, including an EBITDA of -$21.83 million in the last twelve months, InvestingPro analysis suggests the stock may be undervalued at current levels. Investors can access detailed financial analysis, 19 additional ProTips, and comprehensive valuation metrics through InvestingPro’s exclusive research report.

In other recent news, Nauticus Robotics has taken significant steps to address its financial structure by converting $3.7 million of debt into equity. This strategic move is aimed at reducing the company’s leverage and potentially converting additional debt into preferred equity to address compliance issues with Nasdaq. The company has also received a delisting notification from Nasdaq for not maintaining the required minimum market value of listed securities, although trading remains unaffected as they plan to request a hearing.

Nauticus Robotics is actively testing its Aquanaut robots at the Advanced Ocean Systems lake facility in Florida, with the first robot undergoing final checks and a second robot set to join after post-offshore assessments. The company has also completed successful deepwater tests of its Aquanaut vehicle at 2,300 meters in the Gulf of Mexico, showcasing continuous communication capabilities. These developments come as Nauticus Robotics continues to navigate compliance challenges with Nasdaq, having previously received a similar deficiency notice and subsequently regaining compliance earlier this year.

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