MicroVision Secures $75M for Lidar Market Expansion

MicroVision, a leader in MEMS-based solid-state automotive lidar and ADAS solutions, has announced the closure of a two-year $75 million senior secured convertible note facility with High Trail Capital. This strategic financing will enable MicroVision to strengthen its financial position and accelerate its growth in the lidar market.

The convertible note facility consists of an initial $45 million tranche, with an option for an additional $30 million at the company's discretion. The notes have an original issue discount of 8% and will mature on October 1, 2026. They can be converted to common stock at $1.596 per share, subject to certain conditions. If not converted, the notes must be repaid at 110% of the face amount, with partial repayments beginning on January 1, 2025.


The new funding will allow MicroVision to capitalize on potential revenue opportunities in 2025 and beyond, as it advances partnerships with leading industrial customers in the heavy equipment segment. The company is actively engaged with global automotive OEMs in seven high-volume RFQs and custom development explorations for future passenger vehicle programs. MicroVision's multifaceted approach positions it as the solution frontrunner with automotive OEMs, with the potential for significant revenues from industrial customers starting now and higher volume automotive revenues in the coming years.


With this new financing, MicroVision has extended its runway through 2026 and provided more flexibility to opportunistically raise equity capital through its existing ATM program. The company ended the third quarter with $43 million in cash and cash equivalents, and after giving effect to the net proceeds from the first $45 million tranche of the financing transaction, it expects to have approximately $81 million in cash and cash equivalents. Additionally, MicroVision has access to approximately $153 million of additional capital, including $123 million under its existing ATM and the $30 million remaining commitment pursuant to the convertible debt facility.

MicroVision's CEO, Sumit Sharma, expressed excitement about the financing, stating that it comes at an ideal time as the company works toward securing additional revenue opportunities with its integrated lidar hardware and software solution. The company's CFO, Anubhav Verma, noted that the new convertible debt facility provides flexibility and a compelling overall cost of capital to MicroVision, positioning the company competitively in today's marketplace.

In conclusion, MicroVision's $75 million financing deal with High Trail Capital will enable the company to expand its lidar market presence, secure additional partnerships, and accelerate product development and commercialization efforts. With a stronger balance sheet and financial partner, MicroVision is well-positioned to win customers and build long-term value for its shareholders.