Luminar Technologies, Inc. (NASDAQ:LAZR), a manufacturer of motor vehicle parts and accessories, has announced the appointment of Dominick Schiano as a new member of its Board of Directors on Monday. Schiano, known for his business restructuring expertise and deal-making skills, fills a newly created position on the board, expanding its size from eight to nine members.
Schiano brings a wealth of experience from his time at Evergreen Capital Partners (WA:CPAP) LLC and previous executive roles in the automotive industry at Textron (NYSE:TXT) Automotive and TRW, Inc. His initial term as a Class III director will extend until the annual meeting of stockholders in 2026, and he will also serve on the Audit Committee.
In addition to this board appointment, Luminar disclosed a significant corporate action: the Board has approved a reverse stock split of its Class A and Class B common stock at a ratio of 1-for-15. This decision follows a stockholder approval on October 30, 2024, to authorize an amendment to the company's charter to carry out the reverse split anytime before December 31, 2024.
The reverse stock split is set to take effect after market hours on November 20, 2024, with the stock expected to begin trading on a split-adjusted basis on The Nasdaq Global Select Market under the current ticker symbol "LAZR" the following day.
No fractional shares will be issued as a result of the reverse stock split. Instead, shareholders who would have received fractional shares will be compensated in cash based on the closing sales price of the Class A common stock on The Nasdaq Global Select Market on November 20, 2024.
Additionally, Luminar reported the resolution of a legal matter concerning a shareholder class action lawsuit filed on March 21, 2024. The lawsuit challenged a company bylaw related to the nomination process for director candidates. The company amended its bylaws in August 2024, prompting the plaintiff to voluntarily dismiss the case. However, the court retained jurisdiction to determine the plaintiff's counsel's application for attorneys' fees and expenses, which was settled for a payment of $125,000 by the company.
InvestingPro Insights
Luminar Technologies' recent corporate actions, including the board appointment and reverse stock split, come at a critical time for the company. According to InvestingPro data, Luminar's market capitalization stands at $497.09 million, reflecting the challenges it faces. The company's revenue for the last twelve months as of Q3 2024 was $75.03 million, with a revenue growth of 27.61% over the same period.
InvestingPro Tips highlight that Luminar is "quickly burning through cash" and "may have trouble making interest payments on debt." These insights are particularly relevant given the company's recent corporate restructuring efforts. The reverse stock split could be seen as a strategy to maintain Nasdaq listing requirements and potentially improve the stock's appeal to institutional investors.
Despite these challenges, InvestingPro Tips also note that Luminar has shown a "significant return over the last week" and a "strong return over the last month," with price total returns of 17.22% and 25.27% respectively. This recent positive momentum might be influenced by the announced changes and could indicate investor optimism about the company's strategic moves.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Luminar Technologies, providing a deeper understanding of the company's financial health and market position.
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