CENTENNIAL, Colo. - NUBURU, Inc. (NYSE American: BURU), known for its high-power industrial blue laser technology, has announced a $3 million investment in its common stock by strategic investors. This investment aims to support the company's growth and expedite the fulfillment process towards consistent revenue generation. The company has also received initial purchase orders from new customers in emerging markets.
The investment is led by Alessandro Zamboni, a seasoned figure in the fintech sector and Chairman of the AvantGarde Group S.p.A. His expertise is expected to propel NUBURU's business strategy forward.
NUBURU's recent business highlights include an order to supply its BL-300 lasers to a leading battery systems manufacturer for the sustainable energy sector, which will be utilized in automated welding for electric vehicle (EV) battery modules.
In line with the investment, NUBURU plans to convene a special stockholder meeting to seek approval for issuing additional common stock. The purpose is to acquire controlling and non-controlling interests in one or more entities, facilitating asset acquisition and business diversification. The company will continue to explore capital-raising opportunities following the authorization from its special meeting of stockholders on February 22, 2024.
Founded in 2015, NUBURU specializes in blue laser technology that enhances welding and manufacturing processes for metals such as copper, gold, and aluminum. The company's lasers are designed to produce high-quality welds at speeds up to eight times faster than traditional methods.
The information provided in this article is based on a press release statement from NUBURU, Inc.
InvestingPro Insights
As NUBURU, Inc. (NYSE American: BURU) embarks on a journey to enhance its growth trajectory with strategic investments and business diversification, it's crucial for investors to understand the company's financial health and market performance. According to InvestingPro data, NUBURU has a market capitalization of $5.2 million, signaling a relatively small player in the industry. Despite a remarkable revenue growth of 100.95% in the last twelve months as of Q3 2023, the company's gross profit margin during the same period stands at a concerning -180.52%, indicating that the cost of goods sold significantly exceeds the revenue generated.
In addition, NUBURU's stock price has experienced significant volatility, with a 1-year price total return of -94.62%, reflecting a sharp decline in investor confidence. This is in line with several InvestingPro Tips that highlight the company's challenges, such as operating with a significant debt burden, quickly burning through cash, and suffering from weak gross profit margins. The stock's current price of $0.15 is just 2.09% of its 52-week high, further emphasizing the price's poor performance over the last year.
Investors considering NUBURU as a potential addition to their portfolio should be aware that the company does not pay a dividend, which could be a factor for those seeking regular income streams. For those interested in a deeper analysis, there are 13 additional InvestingPro Tips available on InvestingPro, offering insights into metrics such as the company's ability to meet short-term obligations and its valuation multiples. To gain access to these valuable tips, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. This could be an essential tool for investors to navigate the complexities surrounding NUBURU's financial landscape.
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