Aurora to Sell $420M in Shares for Self-Driving Truck

Aurora Innovation, a self-driving technology company, is raising hundreds of millions in additional capital to achieve an autonomous commercial launch by the end of 2024

Aurora is currently in the process of developing a driver-as-a-service model. This model involves carriers purchasing vehicles equipped with the Aurora Driver technology and providing their services to shippers through these trucks. However, the organization intends to establish itself as a carrier by the conclusion of the current year, providing shippers with up to 20 autonomous Volvo and Paccar vehicles.

According to an SEC filing on Thursday morning, Aurora has arranged to sell up to $420 million worth of Class A common stock to underwriters Goldman Sachs, Allen & Company, and Morgan Stanley. The company’s stock traded as high as $13.12 on opening day, and it made its public début in 2021 through a special purpose acquisition merger.

To account for their fees and comp, the underwriters have agreed to purchase the shares from Aurora at $3.4830 per share, which is marginally lower than the public offering price. The shares will be resold to the public at $3.60 per share if the agreement is finalized on August 2.

Aurora’s stock price increased nearly 29% to $4.50 after the filing.

The accord was announced one day after Aurora filed a prospectus offering to sell $350 million shares. TechCrunch was informed by an individual who was aware that the offering had been increased to $420 million due to robust investor demand.

Aurora Innovation anticipates that the net proceeds from the sale will be approximately $405 million, or approximately $466 million, “if the underwriters exercise their option to purchase additional shares in full” after deducting the standard discounts, commissions, and offering expenses, according to an updated filing.

Aurora did not respond to inquiries regarding its intentions regarding the net proceeds; however, the filing indicates that the company will allocate the funds to “working capital and other general corporate purposes.”

Aurora may not be aware of the precise implications of this. The company also stated in its filing that it will initially allocate the proceeds from this offering to “short and long-term investment grade instruments, certificates of deposit, or guaranteed obligations.”

Aurora’s request for additional funding coincides with the release of its second-quarter results. Aurora possessed $402 million in cash and cash equivalents and $618 million in short-term investments as of June 30, 2024. The company anticipates this will suffice to finance operations through the fourth quarter of 2025, excluding the proceeds from its offering.

Aurora’s expenditure of $198 million in Q2 2024 represents a direct loss, as the venture has yet to generate any revenue.

Aurora may be anticipating future revenue to assist in covering its expenses. The commercial service will commence on the Uber Freight network later this year. The two organizations announced a multi-year partnership in June, enabling Aurora’s autonomous transportation technology to be accessible on the Uber Freight network until 2030.