Vuzix Corp. (VUZI) to Offer 2M Shares of Common Stock for Proceeds of $14.5M

November 29, 2016 9:07 AM EST

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Vuzix Corporation (Nasdaq: VUZI) announced the entry into agreements relating to the sale of 2,000,000 shares of its common stock at an offering price of $7.25 per share. The gross proceeds from the offering will be $14,500,000 before deducting commissions and estimated offering expenses. The shares of common stock are being sold to two new and two existing institutional investors of the Company.

The Company intends to use the net proceeds from the offering for general corporate purposes, including expanding its products, supporting the international rollout of its new M300 and M3000 Smart Glasses, development and launch of its proprietary waveguide technology planned to hit the market in 2017 with the launch of its B3000 binocular waveguide, and for general working capital purposes.

"This financing will greatly strengthen Vuzix' balance sheet and help ensure that the Company has sufficient operating capital to execute on its business plans into 2018," explained Paul Travers, President and CEO of Vuzix Corp. "Vuzix looks forward to several important catalysts heading into CES; this capital infusion will significantly improve our execution capabilities in 2017 and improve our negotiating position in discussions with potential strategic partners and customers."

Chardan Capital Markets, LLC acted as the sole placement agent for this transaction.

The offering is expected to close on December 2, 2016, subject to satisfaction of customary closing conditions.



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