A player in the Lidar and autonomous vehicle space, Israel-based Innoviz (NASDAQ:INVZ) announced that it would sell 26 million shares of INVZ stock, triggering a 20% decline in the name this morning. The firm reported that it would obtain gross proceeds of $65 million from the deal.
More About the Offering
The shares will be offered to the public for $2.50 per share, well below yesterday’s closing price of $3.14. The underwriters of the deal will be able to buy as much as 3.9 million shares of the stock. Innoviz expects the deal to be completed on Aug. 14.
The firm reported that it would utilize the funds that it will raise from the deal “for general corporate purposes.”
Additional Information About Innoviz
Innoviz is cooperating with BMW (OTCMKTS:BMWYY) on the development of advanced Lidar sensors, and the two firms recently announced that they had expanded their partnership in that area.
Lidar is an abbreviation for “light detection and ranging” and enables autonomous vehicles and other machines to detect objects in their environments.
In addition to working with BMW, Innoviz sells Lidar components to one of the world’s largest automotive equipment manufacturers, Canada’s Magna (NYSE:MGA).
Last quarter, the Israeli firm’s top line sank 18.4% versus the same period a year earlier to just $1.47 million. INVZ blamed the decline on its decision to provide Magna with Lidar components instead of full Lidar units, Seeking Alpha reported.
Last year, Innoviz’s top line came in at $6 million, and it reported an operating loss of $133.3 million. As of the end of last quarter, the company had $121.,7 million of cash.
INVZ Stock: Price Action
Heading into today, INVZ stock had sunk 19.3% in the previous five days but was still up 31% over the preceding three months. On the other hand, it had sunk by 20% in 2023.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
