AMC Robotics announced it has entered into a $50 million standby equity purchase agreement to help fund construction and commissioning of its robotic manufacturing facility, which the company is expected to complete by November 2026.
According to AMC Robotics, which develops AI-driven industrial robotics systems, as part of the agreement, an institutional investor also agreed to lend AMC Robotics $3.88 million through convertible promissory notes funded in two tranches, subject to certain conditions. The company said proceeds from the financing are expected to support the facility buildout and production-line commissioning.
The standby agreement gives AMC Robotics the right, but not the obligation, to sell the investor up to $50 million of newly issued common stock, the company said. The company cannot access that equity financing until a registration statement covering resale of the shares is filed with and declared effective by the Securities and Exchange Commission.
The $3.88 million in convertible notes will mature one year after issuance. AMC Robotics can repay the notes with shares priced at the lower of $4.017 per share or 92% of the lowest daily volume-weighted average price during the five trading days preceding the payment or determination date.
The company can also repay some or all of the outstanding notes in cash before maturity, subject to a 6% prepayment premium on the principal being repaid. While the notes remain outstanding, AMC Robotics’ ability to initiate additional advances under the equity agreement is generally limited unless specified conditions are met.
The investor can also require AMC Robotics to issue and sell shares in an amount up to the outstanding balance of the notes, according to AMC Robotics. The company noted that additional details about the financing is included in a Form 8-K filing.