Vuzix announces USD $20 Million registered direct offering

July 1, 2019 – Vuzix Corporation has announced the entry into agreements with two large institutional investors relating to the sale of 5,479,454 shares of its common stock at an offering price of USD $3.65 per share together with warrants to purchase an aggregate 5,479,454 shares of its common stock at an exercise price of USD $4.10 per share. The warrants will be exercisable for a period of two years commencing six months from issuance. The gross proceeds from the offering will be USD $20 million before deducting commissions and estimated offering expenses.

The company stated that it intends to use the net proceeds from the offering for general corporate purposes, including the commercial launch for both its M400 Smart Glasses and M300XL Intrinsically Safe (IS) Smart Glasses (developed in close collaboration with Eaton Corporation), expansion of marketing capabilities for the Blade and other to-be-announced next generation waveguide-based smart glasses.

“The Company received interest this weekend from two large institutional investors and although management and the board had not intended to raise growth capital in this manner, we felt it was prudent and advantageous to strengthen our balance sheet at this time. This financing allows Vuzix more flexibility to effectively supply product as needed while simultaneously ensuring that we are in the best position to negotiate and conclude discussions with prospective large enterprise customers,” explained Paul Travers, President and CEO of Vuzix Corporation. “Going forward, Vuzix will continue to be laser focused on innovating at the highest levels, while continuing to moderate non-essential spending.”

The Special Equities Group, a division of Bradley Woods & Co. Ltd., acted as sole placement agent for the transaction. The shares of common stock and warrants sold in the Offering will be issued separately. The Offering is expected to close on July 5, 2019, subject to satisfaction of customary closing conditions. The shares and warrants are being offered by Vuzix Corporation pursuant to an effective “shelf” registration statement previously filed with and subsequently declared effective on June 13, 2019 by the Securities and Exchange Commission.

Image credit: Vuzix