Nauticus Robotics Seeks Up to $50M in Strategic Investment

HOUSTON — After widening its second-quarter loss, Nauticus Robotics signed a nonbinding letter of intent for up to $50 million with an unnamed strategic investor as the subsea device developer seeks additional capital following a wider second-quarter loss.

The private placement is nonbinding and contingent on due diligence and customary closing conditions, the Sept. 25 filing with the U.S. Securities and Exchange Commission says. Nauticus said the investment could also dilute existing shareholders or result in a change of control, depending on the final terms.

The Houston-area company did not identify the investor, disclose a valuation or give a timetable for completing negotiations. Its board is evaluating the transaction and considering hiring an independent financial adviser.

Nauticus develops autonomous subsea robots and software for offshore operations. The company said the proposed investment would support its immediate and future business goals, but no financial commitment has been made.

The potential investment comes after Nauticus reported $886,000 in second-quarter revenue, a 57% decline from $2.1 million a year earlier. The company said the drop stemmed from a slow start in the market of remotely operated vehicles.

Its second-quarter net loss widened to $11.1 million from $7.5 million a year earlier bringing the six-month loss to $20.4 million.

Nauticus also warned in its quarterly filing that recurring losses and insufficient revenue to cover operating expenses, working capital and capital expenditures created substantial doubt about its ability to continue as a going concern for at least 12 months from the issuance of the financial statements.
The company has continued raising capital while trying to expand commercial activity. On Sept. 23, it announced another reverse stock split, this time at a six-to-one ratio, primarily to satisfy Nasdaq's minimum bid price. The shares began trading on a split-adjusted basis Sept. 25.

The proposed $50 million investment could significantly boost available funds if the deal closes. For now, however, the Sept. 25 agreement is a potential financing, not cash on hand.