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Vuzix Announces Sale Of Common Stock

Vuzix is one of the companies riding the wave of immersive technology, though unlike many of its contemporaries, they have focussed primarily on delivering augmented reality (AR) technology to business and industry. The company is now seeking to raise funds by offering common stick in a Registered Direct Offering.

The company has announced that is has entered into agreements regarding the sale of 2,066,116 shares of its common stock at a price of $6.05 (USD) per share, along with 3 year warrants to purchase an aggregate 1,033,058 shares for $7.00 per share, an offer which is available for a period of three years beginning six months after the initial issuance.

Vuzix are anticipating that gross proceeds from the offering will be in the region of $12,500,000 before deductions such as commissions and expenses are applied. The shares are planned to be offered to existing investors in the company, with the shares of common stock and warrants issued separately.

Proceeds from the offering are planned to be used for purposes such as expanding its product range, as well as going towards the commercial launch of its new line of Blade Smart Glasses. The company announced the Vuzix Blade earlier this month, and pre-orders for the new smart glasses along with its development kit are now available, expected to ship some time in early 2018.

“This financing significantly improves Vuzix’ balance sheet and helps ensure that the Company has sufficient operating capital to execute on its aggressive business plans while also putting Vuzix in a stronger position to effectively negotiate and conclude discussions with potential licensing and strategic partners,” explained Paul Travers, President and CEO of Vuzix Corporation.

Vuzix have been reporting significant gains in 2017 compared to its performance in 2016, with the company reporting a 141% increase in revenue for the third quarter of 2017, compared to the same period in 2016, and the company is anticipating further profits relating to its new products and services resulting from things such as its work with Toshiba.

Further news on Vuzix and other developments in VR business and technology will be right here on VRFocus.