CENTENNIAL, Colo. - NUBURU, Inc. (OTC: BURU), known for its industrial blue laser technology, has set a new date for its previously announced 1-for-40 reverse stock split. The company confirmed that the reverse split is scheduled to occur after the market closes on Tuesday, with the common stock expected to begin trading on a split-adjusted basis from Wednesday morning.
The reverse stock split is a strategic move by NUBURU aimed at boosting the trading price of its shares to meet the New York Stock Exchange's listing standards and to attract larger investors. CEO Brian Knaley commented on the reverse split as part of the company's strategy to resume trading on the NYSE and appeal to investors who might not typically invest in low-priced stocks.
Upon the effectiveness of the reverse split, the common stock will trade under the existing ticker symbol BURU but will be assigned a new CUSIP number, 67021W301. However, the company has cautioned that there can be no guarantee that the reverse split will lead to an increase in the stock price or that any such increase would be sustained or enable the company to meet the NYSE American's listing criteria.
NUBURU, established in 2015, specializes in the development and manufacturing of high-power, high-brightness blue lasers for industrial applications. These lasers are designed to improve the speed and quality of welding and manufacturing processes for metals such as copper, gold, and aluminum. Despite the forward-looking nature of the press release, the company acknowledges the inherent uncertainties in such projections, including the risk of not achieving the desired effects from the reverse split or its product development strategies.
This news is based on a press release statement and does not endorse the company's claims. It aims to provide a balanced view without speculation on the potential success of the company's strategies or the broader industry implications.
In other recent news, Nuburu Inc. has announced a delay in its planned 1-for-40 reverse stock split due to a backlog at the Financial Industry Regulatory Authority (FINRA). The company has also launched the AO-650 laser and the BLTM series, with a focus on manufacturing and shipping the BL250 model in the latter half of 2024. Additionally, Nuburu has secured an $850,000 Phase II contract from NASA to enhance its high-power industrial blue laser technology, aimed at improving power management for lunar and Martian missions. A $3 million investment in Nuburu's common stock has also been made by strategic investors, led by Alessandro Zamboni, Chairman of the AvantGarde Group S.p.A. These recent developments highlight the company's ongoing efforts to expand its operations and increase its market presence.
InvestingPro Insights
In light of NUBURU, Inc.'s (OTC: BURU) recent announcement of a 1-for-40 reverse stock split, key financial metrics and professional insights offer a deeper understanding of the company's current market position. According to InvestingPro data, NUBURU has a market capitalization of just 1.08 million USD, reflecting a relatively small-scale operation within the industry. Additionally, the company has faced significant revenue contraction, with a quarterly revenue growth rate plummeting by -80.1% in Q1 2024.
The company's gross profit margin stands at an alarming -159.78% for the last twelve months as of Q1 2024, indicating more money is being spent on the cost of goods sold than the revenue earned, which is not sustainable in the long term. Moreover, the company's price has experienced a steep decline, with a 1-year total return of -95.24%, signaling a challenging period for the stock.
InvestingPro Tips also reveal critical concerns for potential investors. NUBURU operates with a significant debt burden and may have trouble making interest payments on its debt, which could be a red flag for financial stability. Furthermore, the company's stock price often moves in the opposite direction of the market, adding an additional layer of risk for investors seeking market-correlated returns.
For those considering a deeper dive into NUBURU's financial health and future prospects, InvestingPro offers a comprehensive list of tips to guide investment decisions. Currently, there are 16 additional InvestingPro Tips available, which can be accessed at: https://www.investing.com/pro/BURU. To enhance your investment research experience, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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