Shareholders relieved as Fisker secures funding for additional battery capacity and electric vehicle projects, increasing its cash balance since last quarter.
Today, Fisker made a powerful statement to its shareholders by demonstrating its access to cash. The company announced its plans to raise new capital, which will support its business growth initiatives. Fisker aims to further solidify its position in the electric vehicle market by focusing on expanding battery pack capacity and facilitating growth in 2024. The company’s goal is to enhance its competitive edge and capture a larger market share. This comes as a relief to shareholders who were uncertain about the company’s ability to finance upcoming projects like the PEAR, RŌNIN, and Alaska pickup truck.
Fisker’s Surging Stock Price Reflects Investor Confidence
As a result of this promising announcement, Fisker’s stock is surging. Fisker has removed investor concerns about funding and paving the way for an exciting future for the company and its shareholders. The announcement outlines Fisker’s plans to raise $340 million through convertible debt with an initial conversion price of $7.80/share. It also gives the company the ability to increase that amount to $680 million. This fresh capital will supplement Fisker’s existing cash balance of $652.5 million, as reported in May for the ending of Q1 2023. Currently, the stock of the Fisker Ocean maker is trading higher at $6.68 per share, representing a $0.68 (+11.25%) increase.
Convertible Debt: Unveiling Fisker’s Path to Financing and Investor Partnership
According to Fisker, the company will offer the new convertible debt to an unnamed institutional investor. However, Fisker does not expect to close the offering until tomorrow. At that time, the company could reveal the details about the source of the funding. The convertible debt will grant a substantial stake in the company to the unnamed institutional investor. This is significant, especially considering Fisker’s current market cap of $2.15 billion. We will likely hear more about this capital raise during Fisker’s Q2 2023 earnings results scheduled for early next month.
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