Westborough-based defense optics manufacturing firm Kopin Corp. has entered into a securities purchase agreement for private investment in company shares expected to raise $41 million for the firm.
Kopin plans to use the funds for developing its color microLED technology, as well as advancing its AI technology and development of other products.
Private investors will be issued 19.55 million shares of stock at a price of $2.10 per share, as part of the private investment in public equity financing deal, according to a Kopin press release on Monday.
“This was a targeted partnership with investors who share our long-term vision and bring strategic value to Kopin,” Erich Manz, CFO of Kopin who joined the firm in August, said in the press release. “Their commitment underscores confidence in our technology, growth opportunities, and transformation strategy.”
Private investment in public equity financing allows investors to purchase shares at a discount rate as a means of quickly raising capital without the regulatory hurdles associated with public offerings, according to Investopedia.com.
Kopin Corp opened trading on Monday on the Nasdaq exchange at a share price of $2.40, leading to a 12% discount for private investors involved in the deal.
Investors include Theon International, a Cyprus-based manufacturer of night vision and thermal imaging equipment, Ondas Holdings, a Boston-based autonomous aerial and ground robot manufacturer, and Unusual Machines, a commercial drone manufacturer based in Florida.
“Ondas develops autonomous aerial and ground robotics platforms for mission-critical defense and security markets, where every ounce of size, weight, and power matters,” Eric Brock, chairman and CEO of Ondas Holdings, said in the press release. “By investing in Kopin, we are not only supporting a supply chain partner but also unlocking opportunities to co-develop integrated solutions that align tightly with our long-term strategic roadmap.”
Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the manufacturing and real estate industries.
