Luminar Secures $200M Convertible Stock After CEO Departure

Luminar Technologies has secured a financial agreement to raise up to $200 million through the issuance of convertible preferred stock to Yorkville Advisors Global's investment fund YA II PN, Ltd., and another accredited investor over an 18-month period. The initial tranche involves $35 million, with potential additional tranches of up to $35 million every 60 to 90 days, priced at 96% of stated value, although Luminar is not obligated to issue all tranches. The proceeds from the initial issuance will be used for general corporate purposes and debt retirement, enhancing Luminar's liquidity and balance sheet flexibility amid recent leadership changes and layoffs. This move is part of Luminar's broader strategy to extend its liquidity runway and support long-term growth, with the convertible preferred stock offering options for voluntary conversion into common stock under specific conditions. Luminar recently replaced its founder Austin Russell as CEO with Paul Ricci and has undergone multiple rounds of layoffs since spring 2024. The funding agreement reflects the company's effort to maintain financial stability as it advances its automotive technology initiatives.