Henrik Fisker speaks out to calm retail investors after announcing the launch of a $350 million at-the-market equity program.
This morning, Fisker announced an at-the-market offering to raise up to $350 million in new capital. The company filed to raise money to fund the PEAR program, additional vehicle development, retail development, additional technology development and general corporate purposes.
At one point today, $FSR shares were down 20% on the day. As a result, retail investors went to social media with pitchforks in hand. Not all investors were angry, some with full support behind Henrik Fisker and the management. The stock began to recover at the end of the day. Shares closed down $1.41 (-12.79%) at $9.61/share.
We defended the company’s announcement this morning: 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.
Henrik speaks out…
In the evening hours tonight, Henrik Fisker cleared the air on Stocktwits in regards to the at-the-money announcement from this morning. Stocktwits has been a very useful tool for Henrik Fisker to connect with retail investors. He replied to two angry shareholders to help calm them down. He reiterated the company didn’t raise any money today.
No one sold any shares yesterday. Read the announcement. Second. We are building a global EV company planning to launch several new models before 2025. As a shareholder you should be happy we can still raise money in this environment, when we want to. 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.
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