Supply chain challenges, the COVID-19 pandemic, and competitive market pressures have led several robotics companies to re-examine their finances, even if they are profitable. Supply chain automation provider Berkshire Grey Inc. yesterday announced tht it has entered into a purchase and registration rights agreement for up to $75 million with Lincoln Park Capital Fund LLC.
“We are pleased to enter into this agreement with Lincoln Park and expect to use the proceeds, as available, for general corporate purposes, which may include investments and strategic transactions,” said Tom Wagner, CEO of Berkshire Grey. “This transaction provides us with additional financial flexibility as we continue to execute on our business plan.”
Berkshire Grey reports strong year so far
Berkshire Grey said its technology combines robotics and artificial intelligence to automate fulfillment, supply chain, and logistics operations. In the past year, Berkshire Grey has released products for product sortation and reverse logistics, as well as the BG FLEX mobile robot for fulfillment.
The Bedford, Mass.-based company said its systems can transform pick, pack, move, store, organize, and sort operations. They can deliver competitive advantage for enterprises serving today’s connected consumers, claimed the company.
Berkshire Grey said its customers include Global 100 retailers and logistics service providers. The company has collaborated with ABB, FedEx, Logistex, Osaro, and Swisslog.
In February, Berkshire Grey said it had received $14 million in new orders since November 2021. It reported $23.4 million in revenue for the second quarter of 2022.
About the Lincoln Park agreement
Under the terms and conditions of the new agreement, Berkshire Grey has the right, but not the obligation, to sell up to $75 million of its shares of common stock to Lincoln Park over a 36-month period, subject to certain limitations. Any common stock that is sold to Lincoln Park will occur at a purchase price that is determined by prevailing market prices at the time of each sale, with no upper limits to the price it may pay for the common stock.
There are no warrants, derivatives, or financial or business covenants associated with the agreement and Lincoln Park has agreed not to cause or engage in any direct or indirect short selling or hedging of the Berkshire Grey’s common stock. The company said it issued common shares to Lincoln Park as consideration for its commitment to purchase the common stock under the agreement.
More details about the transaction are available in the Current Report on Form 8-K that Berkshire Grey filed with the U.S. Securities and Exchange Commission (SEC).
Last year, Berkshire Grey announced its intenttion to merge with special-purpose acquisition company (SPAC) Revolution Acceleration Acquisition Corp. (RAAC) in a deal worth up to $413 million.
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