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Resonant raises capital and adds a board member +2

08:06 06-Aug-19


In advance of earnings tonight, Resonant has announced plans to raise $10M in funds by selling shares at $2.53 each to Murata Electronics, as well as institutional and individual accredited investors.  The agreement with Murata also includes a multi-year commercial agreement providing it with rights to multiple designs utilizing Resonant’s technology.

Given recent RESN prices, the terms here are probably about as good as could be hoped for, especially since we've start to see Asian companies take the technological lead from western ones.  Murata is a Japanese company with global reach, an existing software portfolio for parts design, and growing sales in excess of $1.5b.  So, this could be the beginnings of the partnership that I've long looked for.  That said, the new capital only represents another quarter or two of operations for Resonant. So, seeing revenue ramp tonight is as important as ever.

Separately, Resonant is adding Rubén Caballero, who until recently headed Apple's 5G efforts, to its board.  It's a high-profile addition for Resonant, validating its status as a tech leader, but I didn't need any convincing on that front and don't see this as material to the stock.