San Jose, Calif., United States:
Cepton, Inc. (“Cepton”) (Nasdaq: CPTN), a Silicon Valley innovator and chief in high performance lidar solutions, introduced immediately that it has entered right into a binding funding settlement dated October 27, 2022 (“Investment Agreement”) for a $100 million funding from its long-term automotive Tier 1 companion and present shareholder, Koito Manufacturing Co., Ltd. (“Koito”) (TSE: 7276). As beforehand reported, the funding will probably be used to fund Cepton’s subsequent stage of progress because it scales its lidar options for mass deployment.
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Dating again to 2017, Cepton and Koito have a powerful historical past of collaboration, and this marks Koito’s third funding in Cepton since 2020. © Cepton, Inc.
Under the phrases of the Investment Agreement, which has been unanimously accepted by Cepton’s board of administrators, Koito will buy $100 million of convertible most well-liked inventory (the “Preferred Stock”), with a purchase order value of $1,000 per share. The Preferred Stock will probably be convertible, starting on the primary anniversary of the difficulty date, into shares of Cepton’s widespread inventory at an approximate preliminary conversion value of $2.585 per share, representing a ten.0% premium to Cepton’s volume-weighted common value over the trailing 20 buying and selling day interval ending on October 26, 2022. The preliminary conversion value additionally represents a 13.4% premium to Cepton’s closing value on October 26, 2022 and a 7.0% premium to Cepton’s common closing value over the previous 5 buying and selling days. At Cepton’s election, the Preferred Stock carries a 4.250% every year dividend if paid in sort or a 3.250% every year dividend if paid in money, in every case paid quarterly in arrears.
Dating again to 2017, Cepton and Koito have a powerful historical past of collaboration, and this marks Koito’s third funding in Cepton since 2020. As a direct results of their partnership, Cepton and Koito have been awarded the trade’s largest recognized ADAS lidar collection manufacturing award.
“We are excited to further strengthen our partnership with Koito and remain deeply grateful for Koito’s continued support. This investment solidifies Cepton’s financial position, and allows us to continue our execution excellence as we focus on commercialization and mass market deployment of our lidar sensors,” stated Dr. Jun Pei, Cepton’s Co-Founder and CEO.
“We are pleased to announce our third investment in Cepton as we work towards developing and commercializing next-generation automotive sensor technologies. Our partnership has developed over the years and Cepton remains a critical partner for us. This investment serves as a testament to our commitment towards Cepton and bringing lidar-based ADAS and AV systems to everyday vehicles,” stated Mr. Michiaki Kato, Koito’s President.
Consummation of the funding is topic to, amongst different issues, the approval of Cepton’s shareholders and satisfaction of relevant closing situations. The funding is anticipated to shut within the first quarter of 2023. More data relating to the funding and key phrases of the Preferred Stock will probably be included in a Form 8-Ok to be filed by Cepton with the Securities and Exchange Commission.
Advisors
ICR Capital LLC is serving as unique monetary advisor to Cepton and O’Melveny & Myers LLP is serving as authorized counsel to Cepton. SMBC Nikko is serving as unique monetary advisor to Koito and Davis Polk & Wardwell LLP and Nishimura & Asahi are serving as authorized counsel to Koito.
Forward-Looking Statements
This press launch contains “forward-looking statements” inside the that means of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements could also be recognized by way of phrases similar to “estimate,” “objective,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target,” “milestone,” “designed to,” “proposed” or different related expressions that predict or indicate future occasions, developments, phrases and/or situations or that aren’t statements of historic issues. Cepton cautions readers of this press launch that these forward-looking statements are topic to dangers and uncertainties, most of that are troublesome to foretell and lots of of that are past Cepton’s management, that might trigger the precise outcomes to vary materially from the anticipated outcomes. These forward-looking statements embrace, however usually are not restricted to, statements relating to the proposed transaction contemplated by the Investment Agreement, the phrases of the Preferred Stock, together with with respect to potential conversion or repurchase thereof, and the associated rights and protections granted to Koito in connection therewith, the potential advantages of coming into into and consummating the proposed transaction contemplated by the Investment Agreement, together with with respect to Cepton’s monetary place and talent to execute on commercialization and mass market deployment objectives, the power of Cepton to acquire essential approvals, together with the approval of Cepton’s shareholders for the Preferred Stock transaction, satisfying the relevant closing situations for such proposed transaction contemplated by the Investment Agreement, and the timing thereof. These forward-looking statements shouldn’t be relied upon as representing Cepton’s assessments as of any date subsequent to the date of this press launch. Accordingly, undue reliance shouldn’t be positioned upon the forward-looking statements. Cepton undertakes no obligation to replace any forward-looking assertion to mirror occasions or circumstances after the date on which the assertion is made or to mirror the incidence of unanticipated occasions.
About Cepton
Cepton is a Silicon Valley innovator of lidar-based options for automotive (ADAS/AV), smart cities, smart spaces, and sensible industrial purposes. With its patented lidar know-how, Cepton goals to take lidar mainstream and obtain a balanced strategy to efficiency, value and reliability, whereas enabling scalable and clever 3D notion options throughout industries.
Cepton has been awarded a major ADAS lidar collection manufacturing award with Koito on the General Motors business. Cepton can be engaged with all Top 10 world OEMs.
Founded in 2016 and led by trade veterans with a long time of collective expertise throughout a variety of superior lidar and imaging applied sciences, Cepton is targeted on the mass market commercialization of excessive efficiency, top quality lidar options. Cepton is headquartered in San Jose, CA and has a middle of excellence facility in Troy, MI to offer native assist to automotive clients within the Metro Detroit space. Cepton additionally has a presence in Germany, Canada, Japan, India and China to serve a fast-growing world buyer base. For extra data, go to www.cepton.com and comply with Cepton on Twitter and LinkedIn.
About Koito
Under the company message, “Lighting for Your Safety”, Koito Manufacturing Co., Ltd. (Koito) has been marking a historical past of management in automotive lighting since its institution in 1915. Today, the Koito Group consists of 31 corporations positioned in 13 nations worldwide and supplies services and products to clients everywhere in the world, by means of the worldwide community led by 5 main areas (Japan, Americas, Europe, China, and Asia). Its merchandise, acknowledged for its top quality and superior know-how, are extensively utilized by automotive makers worldwide. The firm is responding to the long run transformation of mobility by means of the event of next-generation lighting applied sciences and associated gear, management programs, and environmentally pleasant merchandise, supplies, and manufacturing strategies. For extra data, please go to www.koito.co.jp/english.
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