WEBSTER, TX – Nauticus Robotics, Inc. (NASDAQ:KITT) has announced a reduction in the conversion price of its outstanding loans, according to a recent filing with the Securities and Exchange Commission.
On Monday, the company stated that the conversion price of the loans has been adjusted to $1.59, aligning with the closing price of the company's common stock on the preceding day, January 2, 2025. This price adjustment follows the company's reverse stock split.
The loans, which are convertible into shares of Nauticus Robotics' common stock, were initially set at a conversion price of $0.4582, a figure subject to adjustments as outlined in the Senior Secured Term Loan Agreement dated January 30, 2024. The agreement involves Nauticus Robotics as the borrower, with ATW Special Situations Management LLC serving as the collateral agent.
The decision to modify the conversion price was made under the terms of the Loan Agreement, which permits such changes with the written consent of the required lenders, subject to compliance with Nasdaq rules. The company's board of directors deemed the reduction appropriate, and it received the necessary consent from the lenders.
The conversion of loans to common stock is also subject to a beneficial ownership limitation, which restricts lenders from owning more than 4.99% of the company's outstanding shares, with an exception for one lender. This limitation is a common measure to prevent any single lender from gaining excessive control over a company through debt conversion.
The adjustment in the conversion price could potentially affect the company's stock as it may lead to an increase in the number of shares outstanding if lenders choose to convert their loans. The exact impact will depend on the actions of the individual lenders and the performance of Nauticus Robotics' stock in the market.
This financial maneuver is part of Nauticus Robotics' ongoing financial strategy, as the company seeks to manage its debt obligations and equity structure. The information is based on a press release statement and reflects the company's latest strategic financial decisions.
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