Lidar technology company Luminar Technologies has reached a funding agreement with Yorkville Advisors Global and an undisclosed investor that could provide up to $200 million through the sale of convertible preferred stock over the next 18 months, according to a regulatory filing made Wednesday.
Under the terms of the deal, Luminar will immediately issue $35 million in convertible preferred stock. The company may issue additional tranches of up to $35 million every 60 days, priced at 96% of the stock’s stated value. However, Luminar is not obligated to issue the full amount.
“Today’s transaction provides us with additional financial flexibility and further strengthens our balance sheet,” said CFO Tom Fennimore. “We’ve made substantial progress in extending our liquidity runway with our restructuring efforts, and the additional capital available to us under this facility provides us with another tool to realize our long-term value.”
The capital raise follows significant internal restructuring. Earlier this month, Luminar’s board removed founder Austin Russell as CEO and board chair, naming Paul Ricci — former chairman and CEO of Nuance — as his replacement. The leadership change coincided with a third round of layoffs since spring 2024. The latest job cuts, which began May 15, are expected to result in $4 million to $5 million in related cash charges over the second and third quarters of 2025. In total, the company has laid off 212 employees this year.
Founded by Russell in 2012, Luminar emerged from stealth mode in 2017 at the peak of interest in autonomous vehicle technology. The company went public via a SPAC merger with Gores Metropoulos Inc. in 2021, reaching a market valuation of $3.4 billion. Today, Luminar’s market capitalization has shrunk to $179 million.
Despite partnerships and product developments, Luminar has struggled to sustain growth and profitability. Yorkville Advisors, which has offered similar financing deals to struggling electric vehicle firms such as Lordstown Motors and Canoo, is now backing Luminar as it navigates its latest restructuring and liquidity strategy. Proceeds from the initial issuance are expected to be used for general corporate purposes and debt reduction.
