Fisker said on Monday it would pause production of its electric vehicles for six weeks and raise up to $150m (about R2.83bn) in funding by selling convertible notes as the startup tries to navigate a cash crunch and weak demand for its cars.
The company added that none of its Ocean SUVs was produced in January and its manufacturing partner Magna made about 1,000 vehicles between February 1 and March 15.
The senior secured convertible notes will have a 10% original issue discount for gross proceeds of up to $150m, Fisker said.
Fisker reiterated on Monday that it was in talks with a large carmaker for a potential transaction, but did not name the company.
Reuters reported earlier this month that Nissan was in advanced talks to invest in the company in a deal that could act as a financial lifeline for the cash-strapped EV startup.
Fisker flagged substantial doubt about its ability to continue as a going concern in February and paused investments in future projects until it secured a partnership with an automaker.
The company has hired restructuring advisers to assist with a possible bankruptcy filing, the Wall Street Journal reported last week, citing people familiar with the matter.
Fisker pauses production as it seeks to raise $150m
Image: Supplied
Fisker said on Monday it would pause production of its electric vehicles for six weeks and raise up to $150m (about R2.83bn) in funding by selling convertible notes as the startup tries to navigate a cash crunch and weak demand for its cars.
The company added that none of its Ocean SUVs was produced in January and its manufacturing partner Magna made about 1,000 vehicles between February 1 and March 15.
The senior secured convertible notes will have a 10% original issue discount for gross proceeds of up to $150m, Fisker said.
Fisker reiterated on Monday that it was in talks with a large carmaker for a potential transaction, but did not name the company.
Reuters reported earlier this month that Nissan was in advanced talks to invest in the company in a deal that could act as a financial lifeline for the cash-strapped EV startup.
Fisker flagged substantial doubt about its ability to continue as a going concern in February and paused investments in future projects until it secured a partnership with an automaker.
The company has hired restructuring advisers to assist with a possible bankruptcy filing, the Wall Street Journal reported last week, citing people familiar with the matter.
READ MORE:
Tesla to raise Model Y prices in parts of Europe
Uber to pay $178m in Australian taxi class action settlement
Jody Scheckter’s F1 title-winning Ferrari to be auctioned
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most read
Latest Videos