© Reuters.
TAIPEI – Semilux International Ltd. (NASDAQ: SELX), a key player in the development of components for autonomous vehicles, has entered into a stock purchase agreement with investment firm White Lion Capital. The deal provides Semilux with the option to sell up to $50 million of its common stock to the Nevada-based company.
The transaction is designed to give Semilux flexible access to capital, which it plans to use for working capital to enhance its application-specific integrated circuit (ASIC), Light Detection and Ranging (LiDAR), and Adaptive Driving Beam (ADB) technologies. This move is aimed at addressing the increasing demand for safety features in the autonomous vehicle industry.
Under the terms of the agreement, White Lion Capital is committed to purchasing up to $50 million in stock, contingent on Semilux’s request, over a period that begins with the effective date of a related registration statement. The pricing of the stock will be determined by the market price at the time of each sale.
Dr. Yung-Peng Chang, Co-Chief Executive Officer of Semilux, expressed confidence in the agreement, stating that it demonstrates investor confidence and provides the company with an efficient route to U.S. capital markets. The funds are expected to significantly bolster Semilux’s investments in its existing programs and enable strategic portfolio expansion.
Semilux, headquartered in the Cayman Islands, operates through its subsidiaries, including Taiwan Color Optics, Inc., which specializes in optical and 3D sensing technologies for various applications such as automotive laser headlights and LiDAR systems.
The press release made clear that this announcement does not constitute an offer to sell securities and that any sales would comply with securities law requirements. It should be noted that forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from those projected.
InvestingPro Insights
In the wake of Semilux International Ltd.’s recent stock purchase agreement with White Lion Capital, investors may be closely monitoring the company’s stock performance. According to InvestingPro data, Semilux has experienced a significant decline in its stock price over various time frames, with a 1-week total return of -68.1%, a 1-month total return of -83.86%, and a year-to-date return of -83.82% as of the 53rd day of the year 2024. This downward trend is also reflected in the company’s 1-year total return of -82.93%.
Despite the current challenges, the stock’s price is at 14.65% of its 52-week high, which could indicate a potential entry point for investors who believe in the company’s long-term growth prospects, especially considering its strategic capital infusion aimed at advancing its technologies in the autonomous vehicle industry.
The average daily volume for Semilux over the past three months stands at 0.47 million USD, suggesting a moderate level of trading activity in the stock. Investors seeking to better understand the nuances of Semilux’s stock performance and potential opportunities may benefit from additional insights available on InvestingPro. There are more InvestingPro Tips that can provide a deeper analysis into Semilux’s financial health and market position. For those interested, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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