Luminar, a lidar company, has secured a deal with Yorkville Advisors Global and another unnamed investor, potentially bringing in an additional $200 million through the sale of convertible preferred stock over 18 months. This agreement, announced in a regulatory filing on Wednesday, comes after a sudden change in leadership and layoffs.

Earlier this month, Luminar’s board replaced founder Austin Russell as CEO and board chair, appointing Paul Ricci, former chairman and CEO of Nuance, to the role. The company also initiated another round of layoffs, its third since spring 2024, following Russell’s departure.

As per the terms of the agreement, Luminar will issue $35 million in convertible preferred stock to the investors, with the option to issue additional tranches of up to $35 million every 60 days at a purchase price equal to 96% of the stated value of the convertible preferred stock. However, Luminar is not obligated to issue additional stock.

According to Luminar CFO Tom Fennimore, “Today’s transaction provides us with added financial flexibility and strengthens our balance sheet. We’ve made significant progress in extending our liquidity runway through restructuring efforts, and the additional capital available under this facility gives us another tool to achieve our long-term value.”

The company plans to use the proceeds from the initial $35 million issuance for general corporate purposes and debt retirement.

Yorkville has provided similar financial support to other struggling publicly traded companies, including Lordstown Motors, Faraday Future, and the now-bankrupt Canoo.

Luminar was founded by Russell in 2012, when he was just a teenager. The company gained prominence in 2017 after unveiling its lidar technology, which aimed to make self-driving cars safer than human-driven vehicles.

In 2021, Luminar merged with special purpose acquisition company Gores Metropoulos Inc., resulting in a post-deal market valuation of $3.4 billion. Currently, Luminar’s market capitalization stands at $179 million, and the company had raised $250 million prior to the SPAC announcement.

Despite some successes, Luminar has undergone significant restructuring, including cutting approximately 30% of its workforce in 2024 through two rounds of layoffs, affecting a total of 212 employees. Some of these layoffs extended into the first quarter of 2025.

According to a recent regulatory filing, the company initiated additional layoffs on May 15, which are expected to incur $4 million to $5 million in cash charges, primarily in the second and third quarters of this year.