LIDAR Company Luminar has reached a deal with Yorkville adviser Global and will once again bring anonymous investors into its stock by selling convertible preferred shares over an 18-month period. The deal was announced in regulatory filings Wednesday, following a sudden change in leadership and layoffs.

Earlier this month, Luminar's board replaced founder Austin Russell as CEO and chairman. The Luminar Board of Directors appointed Paul Ricci to the position. Ricci is the former chairman and CEO of Nuance. The company has also launched another round of layoffs, the third since spring 2024.

Under the terms, Luminar will issue $35 million in convertible preferred shares to investors. Luminar could rise an additional $35 million in less than every 60 days, at a price equal to 96% of the stated value of the convertible preferred stock. However, Luminar is not obliged to issue additional shares.

"Today's transactions provide us with more financial flexibility and further strengthen our balance sheet," Luminar Chief Financial Officer Tom Fennimore said in a statement. "We have made significant progress in expanding the liquidity runway through the restructuring efforts, and the additional capital we provide under the facility provides us with another tool to realize our long-term value." ”

The company said the initial $35 million in proceeds is expected to be used for general corporate purposes and debt retirement.

Yorkville has provided these lifelines to other struggling public trading companies, including the failed Lordstown Motors, Faraday Future and now bankrupt Canoo.

Luminar was founded in 2012 when Russell was just a teenager. Luminar and Russell became Silicon Valley darlings when Lidar Startup broke the cover in April 2017 in April 2017 during the peak of the confidentiality and self-driving car technology hype cycle.

In 2021, Luminar merged with special purpose acquisition company Gores Metropoulos Inc., with a market valuation after the transaction was US$3.4 billion. Today, Luminar has a market capitalization of $179 million. Luminar raised $250 million ahead of the SPAC announcement.

Luminar has some wins, but has also reorganized several times. Luminar reduced its workforce by 30% in 2024 through two rounds of layoffs. Some of these layoffs were spilled into the first quarter of 2025. A total of 212 employees were fired.

The company said in regulatory filings earlier this month that it began additional layoffs on May 15. These new layoffs are expected to cost $4 million to $5 million in cash. These costs are expected to arise in the second and third quarters of this year.