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Laser Photonics Corp (NASDAQ:LASE), a $54.54 million market cap company, has entered into a significant financial agreement, securing a $1.05 million loan from Agile Capital Funding and Agile Lending. The deal, effective as of February 13, 2025, was officially reported on Monday with the loan set to be repaid in weekly installments starting February 24, 2025. According to InvestingPro analysis, the company appears undervalued based on its Fair Value assessment.
Under the Business Loan and Security Agreement, the Orlando-based manufacturer of laser machinery will repay the principal amount along with a total interest of $512,000 through weekly payments of $54,000. This repayment schedule is slated to conclude by September 1, 2025. Additionally, the company has agreed to an administrative agent fee of $50,000 payable to Agile Capital. The company maintains strong liquidity with a current ratio of 5.38, and InvestingPro data shows it holds more cash than debt on its balance sheet.
The loan is backed by a blanket lien on the assets of Laser Photonics and its subsidiary, Control Micro Systems Florida, LLC. The company also retains the option to prepay the loan, subject to a prepayment fee equivalent to the total interest that would accrue up to the loan’s maturity date, which is 28 weeks from the effective date of the agreement. With impressive gross profit margins of 55.33%, the company demonstrates strong operational efficiency despite not being profitable over the last twelve months.
This financial maneuver provides Laser Photonics with a substantial cash infusion to support its operations and growth initiatives. The terms of the loan reflect the company’s commitment to fulfilling its financial obligations within a relatively short timeframe.
Investors and market watchers will likely monitor the company’s financial performance in the coming months, as the structured repayment plan indicates a significant cash outflow for Laser Photonics. The details of the loan agreement have been made available in the Exhibit 10.1 of the company’s Form 8-K filed with the Securities and Exchange Commission.
This news is based on a press release statement and provides an overview of the recent financial developments concerning Laser Photonics Corp.
In other recent news, Laser Photonics Corporation has delivered two major orders of its DefenseTech MRLS Finishing laser systems to a Marine Corps base in North Carolina, enhancing the military’s maintenance, repair, and overhaul capabilities. The company also secured a new order for its CleanTech Industrial Conditioning Laser from Cascade Coil Drapery, Inc., which will be used for surface preparation in architectural projects. Additionally, Laser Photonics’ subsidiary, Control Micro Systems, received a significant order from a leading U.S. bicycle manufacturer for its advanced Laser Engraving System, which will aid in product branding and anti-counterfeiting efforts.
The company has also finalized a lease termination agreement, resulting in projected cost savings of approximately $80,000 for 2025, as it moves to a new long-term lease in Lake Mary, Florida. Furthermore, Laser Photonics has expanded its research and development program for Laser Wafer Marking technology to meet the growing demand for semiconductor chips, with a focus on precision and customization. These developments underscore Laser Photonics’ commitment to advancing its laser technologies across various sectors, including defense, architecture, and semiconductor manufacturing.
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