Why AEye (LIDR) Stock Is Trading Higher

AEye Inc LIDR shares are trading higher by 47% to $2.60 during Friday’s session after the company announced it entered a securities purchase agreement with an institutional investment for $3.24 million in financing.

What To Know: The deal includes issuing a senior unsecured convertible promissory note and a warrant for 805,263 shares of common stock. The note, with a 7.4% discount and an annual interest rate of 7.0%, matures in 18 months and is convertible into common stock at $2.22 per share, subject to adjustments.

Starting 90 days post-closing, AEye must make monthly payments combining principal, interest, and other charges. These payments may be settled in cash or stock, depending on equity conditions.

The company is restricted by Nasdaq rules on issuing shares above a specified cap without stockholder approval or legal clearance. If shares can’t be issued post-June 2025 due to this cap, cash payments are required. The accompanying warrant, exercisable after six months, has a $2.22 price and a four-year term.

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How To Buy LIDR Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in AEye’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, LIDR has a 52-week high of $5.15 and a 52-week low of $0.78.