Luminar Technologies Inc (NASDAQ:LAZR) stock is trading sharply lower Monday morning on continued volatility. The company last week announced it had initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas. Here’s what investors need to know.
- Luminar Technologies stock is taking a hit today. What’s pressuring LAZR stock?
What To Know: Luminar said the bankruptcy filing is part of a strategic push to facilitate a court-supervised sale of its assets and address its debt obligations.
A key component of the restructuring is a newly inked agreement to sell its subsidiary, Luminar Semiconductor, to Quantum Computing Inc (NASDAQ:QUBT) for $110 million in cash.
Luminar emphasized that Luminar Semiconductor is not a debtor in the Chapter 11 cases and will continue operations as usual, with the sale subject to higher or better offers under a Section 363 process.
Luminar enters bankruptcy with a Restructuring Support Agreement backed by approximately 91.3% of its first lien noteholders and 85.9% of its second lien noteholders.
CEO Paul Ricci cited “legacy debt obligations and the pace of industry adoption” as primary challenges, stating that a court-supervised sale provides the best path to maximize value. The company expects to continue its daily operations uninterrupted, funded by approximately $25 million in cash on hand.
LAZR Price Action: Luminar Technologies shares were down 64.53%, trading slightly below 22 cents at the time of publication on Monday. The stock is trading near its 52-week low of 18 cents, according to Benzinga Pro data.
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