Fisker shares are suspended from trading after failed talks with a major car manufacturer.
• Fisker doesn’t escape the negative headlines
• Talks with major car manufacturer fail
• Fisker stock suspended after major trading pressure
The struggling EV car maker Fisker can’t make it out of the negative headlines. It has been known for a long time that Tesla’s competitor is in serious financial difficulties.
Bankruptcy of the EV manufacturer also remains possible. At the beginning of March, Fisker announced with a “going concern” warning that there were “significant doubts about the company’s ability to continue as a going concern.” The share price then collapsed dramatically on the US stock exchange NYSE. Since the beginning of the year alone, Fisker’s share price has fallen dramatically. Paper can cope with a loss of almost 95 percent.
Hope for a deal with Nissan
At the beginning of March, there was speculation that the company was “in serious negotiations with a large automobile manufacturer” about joint production and use of the dealer network in North America, as company founder Henrik Fisker told Handelsblatt. It was not specified which large car manufacturer this was supposed to be. However, the Reuters news agency, citing insiders, suspected that it could have been the Japanese car manufacturer Nissan. Specifically, the negotiations were about an investment of more than 400 million US dollars in Fisker’s truck platform, for which the Japanese received access to Fisker’s electric pickup platform in return. Apparently even the key points paper for the agreement had already been completed and the deal only had to go through the due diligence check.
Talks failed
However, investors now have to give up hope that such a deal will be concluded, as MarketWatch reports. As the company announced in a filing with the US Securities and Exchange Commission, negotiations with a major car manufacturer had failed. Fiskers now says that it is continuing to examine “strategic alternatives”. These include “intra- or extra-judicial restructurings”, as well as capital market transactions, buybacks and possible share issues.
Condition for financing commitment not met
But that’s not all the bad news. The company also announced that it would not be able to meet a closing condition of the financing commitment that Fisker entered into on March 18 with an existing investor, namely the Polish investment fund CVI Investment, for gross proceeds of up to It would have cost $150 million. Now they want to talk to the shareholder in question about the possibility of a new waiver or financing under different conditions.
Bankruptcy ahead?
However, things are looking bad for the EV carmaker. The SEC letter states: “These alternatives involve significant uncertainties and there can be no assurance that any of these discussions will be successful or that funds will be available to the Company under the commitment.” Bankruptcy therefore seems more likely than ever.
In addition, the EV carmaker announced that it would propose a reverse stock split to investors at the shareholder meeting on April 24th.
Fisker investors react in horror
Investors respond to the bad news with heavy sales. Fisker shares temporarily fell 28.17 percent to $0.0897 in NYSE trading. Trading in Fisker securities is currently suspended.
Editorial team finanzen.at
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