Koito Manufacturing and Cepton Inc. have announced a $100 million investment agreement.
An agreement between Cepton and Koito Manufacturing has been signed for $100M.
A Silicon Valley innovator and pioneer in high performance lidar solutions, Cepton, Inc. ("Cepton") (Nasdaq: CPTN), announced its investment agrement with Koito Manufacturing Co., Ltd. Dated on October 27, 2022, both companies signed a legally binding investment agreement for a $100 million investment.
Koito is a long-term automotive Tier 1 partner and current shareholder (TSE: 7276) of Cepton. The investment will help Cepton reach its next level of development as it scales its lidar solutions for widespread use.
“We are excited to further strengthen our partnership with Koito and remain deeply grateful for Koito’s continued support. This investment solidifies Cepton’s financial position, and allows us to continue our execution excellence as we focus on commercialization and mass market deployment of our lidar sensors” Cepton Tweeted.
In accordance with the Investment Agreement, Koito will acquire $100 million of convertible preferred shares (the "Preferred Stock") for $1,000 per share. It was unanimously authorised by the Cepton's board of directors.
This price represents a 10.0% premium over Cepton's volume-weighted average price over the trailing 20 trading days ending on October 26, 2022.
The first conversion price is also 7.0% higher than Cepton's average closing price over the previous five trading days. Overall, its 13.4% higher than Cepton's closing price on October 26, 2022. The Preferred Stock bears a 4.250% annual dividend if paid in kind or a 3.250% annual dividend. If paid Cepton opt to pay dividend in cash, it will be paid quarterly in arrears in each case.
Koito and Cepton have a long history of working together dating back from 2017. This is the third investment Koito has made in Cepton since 2020. The largest known ADAS lidar series production award in the industry was given to Cepton and Koito as a direct result of their collaboration.
Dr. Jun Pei, Cepton’s Co-Founder and CEO Mentioned, “We are excited to further strengthen our partnership with Koito and remain deeply grateful for Koito’s continued support. This investment solidifies Cepton’s financial position, and allows us to continue our execution excellence as we focus on commercialization and mass market deployment of our lidar sensors.”
“We are pleased to announce our third investment in Cepton as we work towards developing and commercializing next-generation automotive sensor technologies. This investment serves as a testament to our commitment towards Cepton and bringing lidar-based ADAS and AV systems to everyday vehicles,” said Mr. Michiaki Kato, Koito’s President.
The deal is anticipated to be finalised in the first quarter of 2023. A Form 8-K that Cepton will submit to the Securities and Exchange Commission will include more details about the transaction and the important terms of the Preferred Stock.
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Gene Roe
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