Nauticus Robotics, Inc. (NASDAQ:KITT) said on Monday it has entered into an agreement with existing debtholders to convert about $3.7 million of debt into common equity, a move aimed at reducing leverage.
The company’s shares have surged strongly following the announcement.
The autonomous subsea robotics and software solutions firm said the conversion is expected to strengthen its balance sheet.
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It added that, if necessary, debt holders have agreed to exchange the remaining debt into preferred equity to help the company comply with previously reported Nasdaq listing requirements.
$250 Million Equity Facility
Separately, the company announced that it has secured a $250 million Equity Line of Credit (ELOC) to support its next phase of growth and innovation.
The financing facility is expected to provide flexibility for strategic acquisitions aimed at expanding the company’s technology portfolio and positioning it to enter the fast-growing market for advanced subsea.
The company said the initiative also aligns with the Trump administration’s focus on securing strategic minerals and reducing dependence on foreign producers.
Nauticus plans to pursue acquisitions and technologies that complement its autonomous systems portfolio and support the responsible exploration of rare earth elements and other critical minerals in ultra-deepwater environments.
CEO Commentary
“Access to rare earth minerals is vital for the clean energy, electronics, and defense industries, and Nauticus is uniquely positioned to play a key role in enabling that supply chain. The $250 million equity facility provides us with the strategic and financial flexibility to acquire the right capabilities and partnerships to participate responsibly in this important emerging market,” said John Gibson, President and CEO of Nauticus Robotics.
Building on recent milestones, including the acquisition of SeaTrepid International, which expanded its subsea services and ROV (Remotely Operated Vehicle) capabilities, Nauticus said the initiative reflects its commitment to advancing technological leadership and promoting responsible innovation within the subsea industry.
Price Action: KITT shares were trading higher by 31.53% to $2.315 at last check Monday.
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