STOCK TITAN

NUBURU, Inc. CEO Brian Knaley Outlines Strategic Vision and Growth Milestones in Shareholder Letter

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Positive)
Tags
Rhea-AI Summary

NUBURU, a leader in high-power blue laser technology, shared a letter from CEO Brian Knaley outlining strategic realignments and growth milestones. The company has increased orders, reduced debt by 25%, and plans a 1-for-40 reverse stock split effective June 24, 2024, to maintain NYSE listing and appeal to institutional investors. NUBURU holds over 220 patents and continues to innovate with products like the AO-650 and BL series lasers. The company is focused on reducing carbon emissions and improving manufacturing efficiency. Future plans include expanding their workforce and investing in R&D to maintain industry leadership and open new markets.

Positive
  • Increased orders following strategic realignment.
  • Reduction of outstanding debt by 25%.
  • Established new funding relationships.
  • 1-for-40 reverse stock split to maintain NYSE listing and attract institutional investors.
  • Over 220 patents and pending patents globally.
  • Launch of new laser products like AO-650 and BL series.
  • Focus on reducing carbon emissions and improving manufacturing efficiency.
  • Continued investment in R&D to maintain industry leadership.
  • Strong support from longstanding and new shareholders.
Negative
  • Reverse stock split may signal financial instability to some investors.
  • Dependence on lengthy sales processes with timelines of 18-24 months.
  • by NYSE rules on issuing new shares, affecting debt settlement flexibility.
  • Continuous need for capital-raising efforts, indicating potential cash flow issues.
  • Possible shareholder dilution due to conversion of promissory notes into common stock.

The announcement of a 1-for-40 reverse stock split indicates NUBURU’s strategy to maintain its NYSE listing and potentially make its stock more appealing to institutional investors. A reverse split typically reduces the number of shares outstanding while increasing the share price. Importantly, this action does not affect the company's overall market capitalization. However, it can sometimes be seen as a last-resort tactic to avoid delisting rather than a genuine improvement in the company's fundamentals.

Another important point is the reduction of 25% in outstanding debt, which is a positive signal to investors. Reducing debt can lower financial risk and interest expenses, potentially freeing up resources for investment in growth initiatives. Caution is advised though, as part of this reduction involves converting debt to equity, which dilutes existing shareholders' stakes.

In the long term, the successful execution of these financial maneuvers could significantly improve NUBURU’s financial health and market perception. However, the reliance on obtaining shareholder approval for further debt settlement by issuing additional shares could introduce an element of uncertainty and potential dilution for current shareholders.

Overall, while these financial strategies could stabilize the company, they need to be part of a broader, sustainable growth strategy to ensure long-term success.

NUBURU's commitment to expanding its blue laser technology market is noteworthy. The company's focus on high-power, high-brightness industrial blue lasers, which are more efficient for materials like copper and aluminum, positions it well in sectors like e-mobility, aerospace and medical devices. Innovations such as the BL-250 series are particularly promising, given their broad application range.

In addition, the company’s extensive portfolio of over 220 patents provides a strong competitive moat. This not only showcases its technological leadership but also potential licensing and partnership opportunities, which could be lucrative revenue streams.

However, it's important to note the long sales cycles (18-24 months), which can delay revenue realization. Despite this, the long-term contracts with high-profile clients like NASA and the U.S. Air Force validate the technology’s robustness and market demand.

For retail investors, the potential for significant market share in emerging technology applications paired with long-term, stable contracts can be an attractive proposition, assuming the company can navigate short-term financial challenges.

The advancement of blue laser technology is a milestone. Blue lasers offer superior absorption rates in metals like copper and aluminum compared to traditional infrared lasers, resulting in higher efficiency and better-quality welds. This can translate to reduced energy consumption and enhanced manufacturing productivity, aligning with the industry’s push towards sustainability.

Moreover, the company’s focus on Six Sigma Lean methodologies and ISO quality standards demonstrates a commitment to operational excellence and continuous improvement. This can lead to higher customer satisfaction and lower defect rates. Ensuring these standards in their manufacturing process can make a substantial difference in the product lifecycle and cost efficiency.

The recent introduction of products like the BL-250 model targets high-growth sectors such as medical devices and personal electronics, suggesting a well-thought-out product roadmap aimed at leveraging the unique advantages of blue laser technology.

NUBURU's technical innovations have the potential to disrupt traditional manufacturing processes, offering investors a stake in a company at the cutting edge of industrial technology.

CENTENNIAL, Colo.--(BUSINESS WIRE)-- NUBURU, Inc. (“NUBURU” or the “Company”) (NYSE American: BURU), a leading innovator in high-power and high-brightness industrial blue laser technology, today announced a shareholder letter from its CEO, Brian Knaley.

Dear NUBURU Shareholders, Partners, and Family:

For the last several months, NUBURU has been realigning and refocusing our business and operations and we are beginning to see the positive results of these intense efforts. We are seeing increased orders (which typically require a sales and qualification process that can take 12 months or longer), we have received prestigious recognitions, we have realigned our workforce, we have reduced our outstanding debt by 25%, and we continue to pursue a variety of transactions to further reduce our debt, and we have established new, ongoing funding relationships that are critical to an emerging growth company like Nuburu.

Maintaining NYSE Listing

As part of our overall recalibration, consistent with the authorization previously provided by shareholders, we will be implementing a 1-for-40 reverse stock split of our outstanding stock effective June 24, 2024 and expect that our stock would begin trading on June 25, 2024 on a split-adjusted basis under a new CUSIP number, 67021W301.

We believe this will benefit shareholders by reducing the number of outstanding shares and increasing the share price, making the stock more appealing to institutional investors and analysts who tend to avoid stocks with low prices. Additionally, it will help the Company continue to satisfy the minimum price requirements for listing on the NYSE and make it easier for institutional investors to compare NUBURU's stock price with its peers. The reverse stock split does not affect the Company's fundamental value or the proportional ownership of shareholders. Your stake in the Company remains unchanged.

Capital Structure

In addition to our capital-raising efforts, we have entered into agreements, and are pursuing additional agreements, to extinguish some of our outstanding debt, including the conversion and settlement of outstanding convertible promissory notes in exchange for shares of common stock. Currently, we are limited by NYSE rules that prohibit an issuance of common stock in a transaction if it would result in the issuance of shares equal to 20% or more of our outstanding shares. We intend to settle additional amounts of debt once we have obtained shareholder approval to issue shares in excess of 20% of our outstanding common stock for such purpose. Additional information regarding our settlement of debt is available in a Current Report on Form 8-K filed with the SEC on June 13, 2024.

NUBURU Blue Laser Systems

Looking forward, I am excited and optimistic about the future of our Company. We are strengthening our relationships with our key financing partners, employees, customers, and vendors in order to advance the Company's business plan and increase shareholder value. We will focus on maintaining the NYSE's continued listing standards and propelling NUBURU toward sustainable operational success. NUBURU is poised for growth with our cutting-edge blue laser technology, the validation of which is evident in our current corporate contracts with end-users and distributors and government contracts with entities like NASA and the U.S. Air Force.

NUBURU ships blue laser systems for welding applications, including batteries, large-screen displays, and cell phone components. We hold over 220 patents and pending patents globally, covering blue laser applications, technologies, and 3D printing. Notably, in 2022 and early 2023, we began producing and shipping our AO-650 laser. In January 2023, we launched the NUBURU BLTM series with the BL-250, followed by the BL-1Kw in June 2023, and recently expanded the BL product line to include the BL-300 and BL-1000-F.

Our current focus is on manufacturing and shipping the BL series, specifically the BL250 model, given the acceptance of wire stripping, medical device, and personal electronic application interest. We are also evaluating ways to deliver more power with better beam quality and plan to prioritize this in the second half of 2024. We are poised to enhance shareholder value through the strategic monetization of our innovative IP and the pursuit of additional opportunities that expedite our business development.

With our high-power, high-brightness blue laser technology, NUBURU is driving significant improvements in welding and 3D printing applications by enhancing productivity and cost efficiency for manufacturers in the e-mobility, consumer electronics, aerospace, defense, and 3D printing markets, with the potential to expand into new areas not yet serviced by existing laser technologies.

Our technology is not just about innovation; it is about responsibility. We've developed and patented a pivotal advancement in manufacturing technology that has the potential to transform the industry. NUBURU's cutting-edge technology reduces carbon emissions, promoting sustainability through reduced energy consumption and lower carbon output by more efficiently coupling heat into the processed material.

Blue laser light, which metals such as gold, copper, silver, and aluminum absorb more effectively than infrared light, substantially improves product quality, production yield, and manufacturing speed. These advantages enhance overall productivity and product lifespan, offering significant benefits whether upgrading existing processes or enabling new manufacturing approaches with our laser systems. We aim to reduce waste, limit costs, and improve manufacturing processes by incorporating Six Sigma Lean methodologies and ISO quality standards. These tools help create a quality-driven environment, reducing downtime and defects and deliver a lower cost of ownership to our customers.

Sales and Marketing

To expand our marketing efforts and achieve broader adoption of our technology, we employ our own sales force and have trained and will continue to develop third-party distributors for sales and customer support in key territories, including the Americas, Asia, and Europe. Our sales have historically resulted from long-term discussions with customers, typically taking 18-24 months from first contact to purchase order. We anticipate needing more engineers and production personnel as we scale our manufacturing. We will continue investing in research and development to improve and develop new products to maintain our leadership in the blue laser industry and open new markets while developing new growth opportunities.

The unwavering support from our longstanding and new shareholders, who have demonstrated remarkable resilience during challenging times, is particularly heartening. NUBURU remains committed to its strategic review processes and is open to exploring further opportunities that enhance its capabilities and market position. With this solid foundation, NUBURU's future is bright, driven by a clear vision for innovation and shareholder enrichment. We at NUBURU are grateful to our customers for their business and trust, each other for our hard work, and our shareholders for their support and encouragement.

About NUBURU

Founded in 2015, NUBURU, Inc. (NYSE American: BURU) is a developer and manufacturer of industrial blue lasers that leverage fundamental physics and their high-brightness, high-power design to produce faster, higher quality welds and parts than current lasers can provide in laser welding and additive manufacturing of copper, gold, aluminum, and other industrially essential metals. NUBURU's industrial blue lasers produce minimal to defect-free welds up to eight times faster than the traditional approaches — all with the flexibility inherent to laser processing. For more information, please visit www.NUBURU.net.

Forward-Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including relating to its partnership with GE Additive. All statements other than statements of historical fact contained in this press release may be forward-looking statements. Some of these forward-looking statements can be identified by the use of forward-looking words, including "may," "should," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," "plan," "seek," "targets," "projects," "could," "would," "continue," "forecast" or the negatives of these terms or variations of them or similar expressions. Forward-looking statements in this press release include, among other things: anticipated benefits associated with laser-based additive manufacturing. All forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. All forward-looking statements are based upon estimates, forecasts and assumptions that, while considered reasonable by NUBURU and its management, are inherently uncertain and many factors may cause the Company's actual results to differ materially from current expectations which include, but are not limited to: (1) the ability to continue to meet the security exchange's listing standards; (2) failure to achieve expectations regarding its product development and pipeline; (3) the inability to access sufficient capital to operate as anticipated, whether from Lincoln Park Capital Fund, LLC or other sources; (4) the inability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, the ability of the Company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (5) changes in applicable laws or regulations; (6) the possibility that NUBURU may be adversely affected by other economic, business and/or competitive factors; (7) volatility in the financial system and markets caused by geopolitical and economic factors; (8) failing to realize benefits from the partnership with GE Additive; and (9) other risks and uncertainties set forth in the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in NUBURU's most recent periodic report on Form 10-K or Form 10-Q and other documents filed with the Securities and Exchange Commission from time to time. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. NUBURU does not give any assurance that it will achieve its expected results. NUBURU assumes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by applicable law.

Investor Relations: David Kugelman


Atlanta Capital Partners

(866) 692-6847 Toll Free - U.S. & Canada

(404) 281-8556 Mobile and WhatsAppdk@atlcp.com

Source: NUBURU, Inc.

FAQ

What is the impact of NUBURU's 1-for-40 reverse stock split?

The reverse stock split aims to reduce the number of outstanding shares and increase the share price, making the stock more appealing to institutional investors and helping meet NYSE listing requirements.

When will NUBURU's reverse stock split take effect?

The 1-for-40 reverse stock split will be effective on June 24, 2024, with split-adjusted trading beginning on June 25, 2024.

How much debt has NUBURU reduced?

NUBURU has reduced its outstanding debt by 25%.

What are NUBURU's future plans for its blue laser technology?

NUBURU plans to continue innovating and expanding its product line, focusing on reducing emissions and improving manufacturing efficiency. They will also invest in R&D to maintain industry leadership.

How many patents does NUBURU hold?

NUBURU holds over 220 patents and pending patents globally.

What is NUBURU's primary focus in manufacturing?

NUBURU focuses on reducing carbon emissions, improving productivity, and enhancing product quality in manufacturing processes.

What new products has NUBURU launched recently?

Recent launches include the AO-650 laser and the BL series, including the BL-250, BL-1Kw, BL-300, and BL-1000-F.

How long does NUBURU's sales process typically take?

NUBURU's sales process usually takes 18-24 months from first contact to purchase order.

What are NUBURU's strategies to maintain NYSE listing?

Besides the reverse stock split, NUBURU aims to satisfy NYSE price requirements and attract institutional investors.

What challenges does NUBURU face in settling its debt?

NUBURU is by NYSE rules on issuing new shares, which affects its ability to settle debt quickly.

Nuburu, Inc.

OTC:BURU

BURU Rankings

BURU Latest News

BURU Stock Data

1.40M
38.54M
73.91%
1.02%
34.65%
Administrative Management and General Management Consulting Services
Professional, Scientific, and Technical Services
Link
United States of America
CENTENNIAL