Nauticus Robotics Inc (NASDAQ: KITT) has secured a US$250-million-dollar equity credit line to provide financial flexibility and propel its deep sea mining ambitions. Rare earth elements and critical minerals will be the target commodities.
Stock spiked by 76 per cent during early trading hours Monday on the back of the news.
The underwater tech company announced procuring the equity line of credit on Oct. 27 after receiving a de-listing notification from the Nasdaq Exchange on Oct. 16. It specified that Nauticus was not meeting the US$35-million-dollar minimum market value of listed securities.
As part of its effort to regain compliance, Nauticus has also converted US$3.7 million worth of debt into equity. The aquatic robotics company says it is confident that it will continue to be listed.
“The company anticipates that this conversion will allow it to substantially deleverage the balance sheet,” Nauticus explained. “Additionally, if required, existing debt holders have agreed to exchange outstanding debt into preferred equity with the intention to bring the company in compliance with previously reported NASDAQ issues.”
Nauticus says its latest deep sea mineral exploration goals are part of its broader strategy to leverage the company’s robotic technology, AI and subsea automation tech in new industries critical for the global energy transition. This goal also aligns with the Trump Administration’s strategic mineral goals pertinent to national security, Nauticus says.
“The $250 million equity facility provides us with the strategic and financial flexibility to acquire the right capabilities and partnerships to participate responsibly in this important emerging market,” chief executive John Gibson explained.
Going forward, Nauticus will be targeting the acquisition of businesses and technologies that support its rare earth and critical mineral mining goals in the ocean depths.
“Access to rare earth minerals is vital for the clean energy, electronics, and defense industries, and Nauticus is uniquely positioned to play a key role in enabling that supply chain,” Gibson added.
Prior to this emerging focus, the company’s flagship robot specialized in performing an assortment of underwater tasks. Aquanaut is capable of scanning the seabed, repairing oil pipelines and pinpointing leaks. It is fully electric and can operate autonomously or via remote control.
Aquanaut is complemented by the Olympic Arm device Nauticus has developed and the company’s AI-integrated toolKITT software.
The National Oceanic and Atmospheric Administration just sent a draft rule to the White House that would streamline permitting for deep sea mineral and metal mining, according to a report from POLITICO.
On Sunday, Chinese and American officials established a framework for a trade deal that would cut tariffs and export controls on rare earths. Finalization of such a deal would be beneficial Nauticus and others pursuing mining in the depths of the ocean.
Read more: Neptune Robotics raises US$52M to expand deployment of boat cleaning droids
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