NUBURU Delays Reverse Stock Split to July 1 Via Investing.com

CENTENNIAL, CO – NUBURU, Inc. (NYSE American: BURU) (OTC: BURU), known for its high-power industrial blue laser technology, announced a revised schedule for a planned 1-for-40 reverse stock split.

The new effective date is set for July 1, 2024, a delay from today’s previously targeted date. This adjustment is the result of the NYSE suspending trading in NUBURU’s common shares and initiating delisting procedures, which the company is currently appealing.

The reverse stock split is intended to increase the marketability and liquidity of NUBURU’s shares, with the aim of attracting more institutional investors and regaining its position on the NYSE. CEO Brian Knaley expressed the move as a strategic effort to support the company’s long-term growth. After the split, the company’s common shares will be listed under a new CUSIP number – 67021W301, but will retain the stock ticker symbol BURU.

Despite these plans, NUBURU acknowledges that it may not be successful in its delisting appeal or meet the offering price requirements of the NYSE. In such a case, the company’s shares would still be available on the over-the-counter market. This outcome could potentially impact the company’s share liquidity and market price, as well as its ability to attract investors and obtain equity financing.

Founded in 2015, NUBURU specializes in the development and production of industrial blue lasers used in the welding and additive manufacturing of metals such as gold and aluminum. The company claims its lasers can produce welds up to eight times faster than traditional methods, with fewer defects.

The information contained in this article is based on a press release from NUBURU, Inc. The company cautioned that the forward-looking statements contained in the press release are subject to various risks and uncertainties and that actual results may differ materially from those anticipated.

In other recent news, NUBURU, Inc. announced a 1-to-40 reverse stock split, a strategic move aimed at maintaining the company’s listing on the New York Stock Exchange by meeting minimum price requirements.

The company also made significant progress in reducing debt by 25% and redirecting its business operations. NUBURU’s latest products include the AO-650 laser and the BL series, which aim to meet the requirements of various industries.

Consistent with these achievements, Project NUBURU was awarded an $850,000 Phase II contract from NASA to advance high-power industrial blue laser technology. The technology is expected to improve energy management on lunar and Mars missions, replacing traditional power grids in extraterrestrial environments.

Additionally, NUBURU announced a $3 million investment in its common shares by strategic investors led by Alessandro Zamboni, CEO of AvantGarde Group SpA. This investment is intended to support the company’s growth and accelerate ongoing revenue generation. In addition, NUBURU has received initial orders from new customers in emerging markets, including an order to supply BL-300 lasers to a leading manufacturer of battery systems for the sustainable energy sector.

InvestingPro Insights

In light of the recent announcement of NUBURU, Inc. regarding a reverse stock split and the ongoing delisting appeal, a closer look at the company’s financial health and stock performance is warranted. According to InvestingPro data, NUBURU’s market capitalization is a modest $1.19 million. The company’s share price plummeted, with a one-month total return of -81.33%, reflecting severe market challenges.

InvestingPro’s guidance indicates that NUBURU is saddled with significant debt and may struggle to pay interest on its debt. This is particularly concerning given the company’s negative gross profit margin of -159.78% for the trailing twelve months from Q1 2024, highlighting operational difficulties. The company’s shares are characterized by high price volatility, which may discourage potential institutional investors despite the intended benefits of a reverse stock split.

Investors considering NUBURU as an investment opportunity should be aware that the company has not been profitable in the last twelve months and does not pay dividends to shareholders. With the stock trading at a high earnings valuation multiple and a fair value estimate of $0.05 according to InvestingPro, current financial metrics suggest caution.

For those seeking further information, InvestingPro offers additional guidance on NUBURU’s financial situation and stock performance. Use coupon code PRONEWS24 to get an additional 10% off 1 or 2-year Pro and Pro+ subscriptions for more in-depth analysis.

As the company pursues its delisting appeal and attempts to improve its market position, monitoring these financial metrics and the additional 17 available InvestingPro tips will be critical for investors.

This article was generated with the assistance of AI and reviewed by an editor. More information can be found in our Regulations.