CENTENNIAL, Colo. - NUBURU, Inc. (NYSE American: BURU) (OTC: BURU), known for its high-power industrial blue laser technology, has announced a revised timeline for its planned 1-for-40 reverse stock split.
The new effective date is set for July 1, 2024, a delay from the previously targeted date of today. This adjustment follows the NYSE American's halt of trading in NUBURU's common stock and the subsequent initiation of delisting procedures, which the company is currently appealing.
The reverse stock split is intended to enhance the marketability and liquidity of NUBURU's shares, with the goal of attracting more institutional investors and regaining its position on the NYSE American. CEO Brian Knaley expressed the move as a strategic effort to support the company's long-term growth. Post-split, the company's common stock will trade under a new CUSIP number, 67021W301, but will retain the ticker symbol BURU.
Despite these plans, NUBURU acknowledges the possibility that it may not succeed in its appeal against the delisting or meet the NYSE American's bid price requirements. Should this occur, the company's shares would continue to be available on the over-the-counter market. This outcome could potentially affect the company's stock liquidity and market price, as well as its ability to attract investors and raise equity financing.
Founded in 2015, NUBURU specializes in the development and manufacturing of industrial blue lasers used in welding and additive manufacturing of metals like copper, gold, and aluminum. The company claims that its lasers can produce welds up to eight times faster than traditional methods, with fewer defects.
The information in this article is based on a press release statement from NUBURU, Inc. The company has cautioned that forward-looking statements included in the press release are subject to various risks and uncertainties and that actual results may differ materially from those projected.
In other recent news, NUBURU, Inc. has announced a 1-for-40 reverse stock split, a strategic move aimed at maintaining the company's listing on the New York Stock Exchange by meeting the minimum price requirements.
The company has also been making significant strides in reducing its outstanding debt by 25% and refocusing its business operations. NUBURU's recent product launches include the AO-650 laser and the BL series, aimed at meeting the demands of various industries.
In line with these developments, NUBURU secured an $850,000 Phase II contract from NASA to enhance its high-power industrial blue laser technology. This technology is expected to streamline power management for lunar and Martian missions, replacing traditional power grids in extraterrestrial environments.
Furthermore, NUBURU has announced a $3 million investment in its common stock by strategic investors, led by Alessandro Zamboni, Chairman of the AvantGarde Group S.p.A. This investment aims to support the company's growth and expedite consistent revenue generation. Moreover, NUBURU has received initial purchase orders from new customers in emerging markets, including an order to supply its BL-300 lasers to a leading battery systems manufacturer for the sustainable energy sector.
InvestingPro Insights
In light of NUBURU, Inc.'s recent announcement regarding its reverse stock split and ongoing delisting appeal, a closer look at the company's financial health and stock performance is warranted. According to InvestingPro data, NUBURU's market capitalization stands at a modest 1.19 million USD. The company's stock price has experienced a precipitous decline, with a one-month total return of -81.33%, reflecting significant market challenges.
InvestingPro Tips indicate that NUBURU operates with a significant debt burden and may have trouble making interest payments on its debt. This is particularly concerning given the company's negative gross profit margin of -159.78% for the last twelve months as of Q1 2024, which underscores operational difficulties. The company's stock has been characterized by high price volatility, which could deter potential institutional investors despite the intended benefits of the reverse stock split.
Investors considering NUBURU as an investment opportunity should be aware that the company has not been profitable over the last twelve months and does not pay a dividend to shareholders. With the stock trading at a high revenue valuation multiple and a fair value estimate of 0.05 USD according to InvestingPro, the current financial metrics suggest caution.
For those seeking further insights, InvestingPro offers additional tips on NUBURU's financial position and stock performance. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription for more in-depth analysis.
As the company navigates its appeal against delisting and attempts to improve its market standing, these financial indicators and the additional 17 InvestingPro Tips available will be critical for investors to monitor.
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