AMC Robotics Corporation an AI-driven robotics solutions provider, today announced it has entered into a $50 million standby equity purchase agreement. In connection with the Agreement, an institutional investor loaned the Company $3.88 million in exchange for convertible promissory notes, to be funded in two tranches, subject to certain conditions.
The net proceeds received under the terms of the Agreement are expected to fund the buildout and production line commissioning of the Company's robotic manufacturing facility, targeted for completion by November 2026.
Pursuant to the Agreement, the Company has the right, but not the obligation, to issue and sell up to $50 million in aggregate gross purchase price of newly issued shares of the Company's common stock, par value $0.0001 per share, subject to certain conditions, including that a registration statement covering the resale of the Common Stock be filed and declared effective by the Securities and Exchange Commission.
The Company cannot draw on the funds available under the Agreement, and the Common Stock may not be sold nor may offers to buy be accepted, prior to the time that the registration statement covering the resale of the Common Stock is declared effective by the SEC.
The Notes will mature one year after the issuance date and may be repaid by issuing shares to the Investor at the lower of (i) $4.017 per share, or (ii) 92% of the lowest daily VWAP during the 5 consecutive trading days immediately preceding the payment date or other date of determination. The Company, in its sole discretion, has the right to prepay the Investor in cash, in whole or in part, any outstanding principal amount under the Notes prior to the Maturity Date, an amount equal to the amount being prepaid plus a prepayment premium equal to 6% of the outstanding principal amount being prepaid.
For AMC Robotics, the financing is positioned to accelerate commissioning of its robotic manufacturing facility ahead of original schedule and support scale-up of its AI-driven robotics platforms including Kyro quadruped and NovaArm warehouse logistics sorting robot.
Sean Da, AMC Robotics' Chief Executive Officer, stated, "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. We now believe we are well-situated to raise capital in a cost-effective and accretive manner to penetrate the warehouse and industrial robotics market."
For additional information about the transactions described in this press release, see the Company's Current Report on Form 8-K, which will be filed promptly following the issuance of this press release and which can be obtained, without charge, at the Securities and Exchange Commission's internet site (http://www.sec.gov).
The structure gives AMC Robotics flexibility to raise capital in a cost-effective manner while advancing its focus on intelligent, scalable hardware and software solutions for inspection, security, warehouse automation, and industrial robotics.
About AMC Robotics Corporation
AMC Robotics is an AI-driven robotics company focused on developing intelligent, scalable hardware and software solutions. The Company's quadruped robotic platform, Kyro™, enables industries to automate inspection, security, and operational tasks through autonomous mobility and AI-powered perception and its warehouse logistics sorting robot, NovaArm™ is designed to enhance operational efficiency, improve sorting accuracy, and reduce labor costs for warehouses and distribution centers, addressing the accelerating demand for automation across the U.S. logistics sector.
