- Cepton signed binding agreement with established automotive lighting tier 1 supplier Koito for investment of $100 million to bolster its next stage of growth
- Agreement penned on October 27, 2022, marks the third investment from this long-term automotive Tier 1 partner and existing shareholder since 2020
- Lidar market expected to grow rapidly to reach $59 billion by 2030; Cepton appears to continue leading as a prominent figure, as it works toward commercialization and mass market deployment of its lidar sensors
Following a previously reported letter of intent from Koito Manufacturing Co., Ltd. (TSE:7276), Cepton (NASDAQ: CPTN) has announced that it has entered into a binding investment agreement for a $100 million investment from its long-term automotive Tier 1 partner and current shareholder (https://ibn.fm/LjTSk). This Silicon Valley innovator and leader in high-performance lidar solutions intends to use this investment — Koito’s third since 2020 — to fund the company’s next growth stage as it looks to execute its vision to scale lidar technology for mass deployment. Under the terms of the Investment Agreement, unanimously approved by Cepton’s board of directors, Koito will purchase $100 million of convertible preferred stock. This stock will be convertible, beginning on the first anniversary of the issue date, into shares of Cepton’s common stock at an approximate initial conversion price of $2.23 per share, representing a 10.0% premium to Cepton’s volume-weighted average price over the trailing 20 trading day period. As well as a 13.4% premium 14.4% 30-day VWAP and a 25.5% 90-day VWAP. The company expects to close the investment in the first quarter of 2023, subject to the approval of Cepton’s shareholders and satisfaction of relevant closing conditions. More information regarding the key terms of the investment is included in a Form 8-K that Cepton recently filed with the US Securities and Exchange Commission (https://ibn.fm/tnrlO).
Cepton and Koito have had an established history of collaboration, including one that has been crowned with notable success, such as a significant ADAS lidar series production award on the General Motors business. In September 2022, the company received a Letter of Intent for up to…
NOTE TO INVESTORS: The latest news and updates relating to CPTN are available in the company’s newsroom at https://ibn.fm/CPTN
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