Lidar Company Luminar has signed an agreement with Yorkville Advisor Global with an unknown investor, resulting in an additional $200 million through the sale of convertible preferred stock over 18 months. The contract, announced on Wednesday in a regulatory filing, follows a rapid shift in leadership and layoffs.
Earlier this month, Luminar’s board of directors replaced founder Austin Russell as CEO and board chair. Luminar’s board appointed Paul Rich in the role. Rich is Nuance’s former chairman and CEO. The company has also started layoffs for another round. This is the third time since spring 2024.
Under the terms, Luminar issues $35 million in conversion preferred shares to investors. Luminar may issue additional tranches up to $35 million every 60 days at a purchase price equivalent to 96% of the stated value of the convertible preferred stock. However, Luminar is not obligated to issue additional shares.
“Today’s transactions provide additional financial flexibility and further strengthen our balance sheet,” Luminar CFO Tom Fennimore said in a statement. “We have made great strides in expanding our liquidity runways in our restructuring efforts. The additional capital available at this facility provides another tool to achieve long-term value.”
The company said revenue from the initial $35 million issue is expected to be used for general corporate purposes and debt retirements.
Yorkville offers these lifelines to other struggling public companies, including failed Roadtown Motors, Faraday Future, and now bankrupt canoes.
Luminar was founded in 2012 when Russell was a teenager. Luminar and Russell became Silicon Valley Darling when Lidar startup broke cover in April 2017 after being run for many years in secret and at a height of the hype cycle of autonomous vehicle technology.
In 2021, Luminar merged with special purpose acquisition company Gores Metropoulos Inc., with a post-market market valuation of $3.4 billion. Today, Luminar’s market capitalization is $179 million. Luminar raised $250 million before the SPAC announcement.
Luminar has had some wins, but it has been rebuilt several times. Luminar cut around 30% of its workforce in 2024 with a two-round layoff. Some of these layoffs were leaked in the first quarter of 2025. A total of 212 employees have been fired.
In a regulatory filing earlier this month, the company said it began additional layoffs on May 15th. These new layoffs are expected to cost between $4 million and $5 million in cash. These costs are expected to occur in the second and third quarters of this year.