Vuzix use Intel’s $24 million investment to speed up the introduction of its next generation fashion-based smartglasses.
The $24.8 million will go towards general capital for the company, which is focused on developing optics and displays that are more appealing to a consumer audience.
Vuzix supplies a significant percentage of video eyewear and smart glasses to the consumer and entertainment market, which is growing rapidly making it an ideal investment opportunity for Intel.
Intel bought 49,626 of Vuzix’ series A preferred stock, convertible into 4,962,600 shares of common stock converting to about $5 per share.
Owning such a large chunk of the company’s stock allows Intel to appoint two members of its choice to Vuzix’ board of directors.
Partly thanks to the sale of its series A preferred stock, holders of convertible notes issued by Vuzix last year, and holders of around 86 per cent of warrants issued the year before agreed to waive their individual rights to anti dilution protection.
This move wiped a huge $10 million of derivative liability from Vuzix’ balance sheet.