Fisker Launches $350 Million At-the-Market Offering

Fisker to raise fresh capital in new stock offering ahead of Q1 2023 for PEAR and other purposes putting pressure on the stock.

Updated May 24th at 7:30pm.

Fisker has announced an at-the-market offering to raise up to $350 million in new capital putting pressure on the stock. The company looks to bolster its cash for the PEAR program, additional vehicle development, retail development, additional technology development and general corporate purposes.

Henrik Fisker cleared the air tonight in regards to the at-the-money offering announced this morning. He replied to two angry shareholders about selling shares today. He reiterated the company didn’t raise any money today.

Nobody lied! Listen to the conference call, we always said we will take the opportunity if it arises! As a share holder you should be happy we are actually able to raise money in this environment and accelerate our development of future vehicles. It’s a tough market and those who comes out first with multiple vehicles will take the most market share & grow! 

Don’t forget; the way this is structured we don’t need to raise the money now! We didn’t take any money today.

While all shareholders believe shares would be higher after SOP in November 2022, the prudent thing is to raise now with interest rates on the rise. The best time to raise capital is when you don’t need it. It’s going to be harder to raise money 6 or 12 months from now. Fisker management must have felt now is the best time to raise new capital. Better now than be nearly out of cash in Q1 2023 and needing to fund raise.

Average volume for Fisker shares is 6,732,718, which means it trades ~$65 million in shares daily. It could take Fisker a couple weeks to raise this new capital if it begins the at-the-money offering. If the average sale price is near $10/share the company’s outstanding share count will increase by 35 million shares. Fisker shares closed yesterday at $11.02. Today, shares are down 13.42% to $9.54/share on volume of 4,989,562 shares.

Company asked about funding on Q1 2022 earnings call

In reviewing highlights from the Q1 2022 earnings call, Fisker management was asked about capital raising capital. It was Adam Jonas of Morgan Stanley that raised the question. He recently updated his 12-month price target too among other equity analysts. It was Geeta Fisker that responded to Adam’s question about funding. She said Fisker has capital for the Fisker Ocean SOP and beyond and went on to say:

The company would need capital around Q1 2023. Fisker has interest with another OEM to invest in a platform. The company has filed a shelf offering to bolster the balance sheet. It could either be an equity or debt raise. The company would do a capital raise when the time is right. Fisker will take any effort to consolidate the balance sheet.