Nuburu Inc. (NYSEAMERICAN: BURU) shares jumped 47.5% to $1.77 in after-hours trading on Tuesday after the company canceled a $15 million convertible note tied to Heckler & Koch AG shares.
Balance Sheet Relief Fuels the Jump
According to a Tuesday Securities and Exchange Commission filing, Nuburu will return 295,000 Heckler & Koch shares to London-based Brick Lane Capital Management Limited. In exchange, Brick Lane will cancel the subordinated convertible note, a $15 million loan that ranks below other debt and can be converted into equity.
Nuburu issued the note in February to buy those shares. Canceling it removes a major liability and eliminates potential dilution from conversion.
The filing also details a Side Letter Agreement, effective Sept. 30, between Nuburu and Esousa Group Holdings, LLC and other investors who were party to the company’s July 15 securities purchase agreement.
Trading Metrics, Technical Analysis
Nuburu has a market capitalization of $10.32 million, a 52-week high of $169.66 and a 52-week low of $0.88. The company has approximately 9.26 million shares outstanding.
The Relative Strength Index (RSI) of BURU stands at 46.59.
The small-cap stock of the Colorado-based dual-use defense and security integrated platform company has fallen 98.73% over the past 12 months.
BURU is currently trading close to its 52-week low.
Price Action: The stock closed the regular session on Tuesday at $1.20, up 7.14%, according to Benzinga Pro data.
Benzinga’s Edge Stock Rankings indicate BURU stock has a negative price trend across all time frames.
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