EV startup Fisker to raise up to US$150 million, pauses production

FISKER said on Monday (Mar 18) it would pause production of its electric vehicles for six weeks and raise up to US$150 million 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 were produced in January and its manufacturing partner Magna made about 1,000 vehicles between Feb 1 and Mar 15.

The senior secured convertible notes will have a 10 per cent original issue discount for gross proceeds of up to US$150 million, Fisker said.

Fisker reiterated on Monday that it was in talks with a large automaker 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.

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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. REUTERS