AMC Robotics has entered into a standby equity purchase agreement providing access to up to $50 million as the AI-driven robotics company accelerates commissioning of its manufacturing facility.
An institutional investor also agreed to provide AMC Robotics with a $3.88 million loan through convertible promissory notes funded in two tranches, subject to certain conditions.
The company expects proceeds from the financing arrangement to support the buildout and production-line commissioning of its robotic manufacturing facility, which is targeted for completion by November 2026.
Under the agreement, AMC Robotics has the right, but not the obligation, to sell up to $50 million of newly issued common stock to the investor after a registration statement covering resale of the shares becomes effective.
The convertible notes mature one year after issuance and may be repaid through shares priced at the lower of $4.017 per share or 92% of the lowest daily volume-weighted average price during the five trading days immediately preceding the applicable determination date.
AMC Robotics can alternatively prepay outstanding principal in cash with a 6% prepayment premium.
Management believes the initial note financing could allow manufacturing operations to begin sooner than originally planned.
AMC Robotics is developing AI-powered robotic hardware and software for industrial applications.
Its Kyro quadruped robotic platform is designed to automate inspection, security and operational tasks through autonomous mobility and AI-powered perception.
The company’s NovaArm warehouse logistics sorting robot is designed to increase sorting accuracy, improve operational efficiency and reduce labor costs in warehouses and distribution centers.
The manufacturing facility is intended to give AMC Robotics additional production capacity as it targets increasing automation demand across logistics and industrial markets.
KEY QUOTES:
“The standby equity purchase agreement gives AMCI additional means and flexibility to raise capital on company-friendly terms, and represents an attractive cost of capital.”
“Additionally, we expect that the advance through the issuance of the Notes will allow us to start production at our robotic manufacturing facility ahead of our original schedule.”
Sean Da, CEO of AMC Robotics
