Penny stock Nauticus Robotics (KITT) rallied over 75% on Monday after securing a $250 million equity line of credit (ELOC) to support its next growth phase. The funding gives Nauticus the flexibility to make strategic acquisitions and expand into the fast-growing market of deep-sea rare earth and mineral exploration.
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It must be noted that this sector is gaining importance as governments and industries look to secure domestic sources of strategic minerals and reduce reliance on foreign suppliers.
Apart from the equity facility, Nauticus said it will turn $3.7 million of debt into common stock to cut down its debt and comply with NASDAQ rules. Importantly, these moves helped ease liquidity concerns, giving the company room to invest without taking on debt or diluting shares immediately.
Nauticus Eyes Deep-Sea Mineral Potential
As global demand rises for rare earth minerals, crucial for clean energy, electronics, and defense, Nauticus plans to use its advanced subsea robotics and AI to locate new sources beneath the ocean floor.
The company aims to acquire technologies and businesses that complement its existing tools, including autonomous underwater vehicles (AUVs) and automation software.
“Access to rare earth minerals is vital for the clean energy, electronics, and defense industries, and Nauticus is uniquely positioned to play a key role in enabling that supply chain,” said CEO John Gibson.
Gibson, who previously worked with lithium producer Orocobre Ltd., brings more than a decade of experience in critical mineral production.
Overall, this move aligns with the Trump administration’s push to strengthen critical mineral supply chains. Also, Nauticus’ expansion into subsea mining reflects its strategy to use its robotics and AI expertise to be part of the global energy transition.
What Is the Future Outlook for KITT?
According to the TipRanks AI analyst, KITT stock received a score of 40 out of 100 with an Underperform rating. Further, the AI analyst has set a price target of $2 on Nauticus Robotics stock, which implies a downside of over 9%.
The AI analyst cited concerns over financial issues such as weak cash flow. Also, technical analysis suggests downward pressure.
