Fisker (NYSE: FSR) stock plummeted over 15% on Monday after the company secured $150 million in financing and announced a six-week production pause.
Fisker (FSR) has revealed a significant boost in its financial backing as an existing investor commits to providing up to $150 million in gross proceeds. This financing, originating from the holder of its 2025-dated convertible notes, will be structured in four tranches, contingent upon specific conditions, including the submission of Fisker’s 2023 Form 10-K.
At the same time, Fisker has decided to halt production for six weeks starting March 18. This temporary pause will enable the company to balance inventory and advance its strategic and financing initiatives.
Moreover, the electric vehicle (EV) manufacturer has disclosed ongoing discussions with a major automotive player regarding a prospective collaboration. This potential deal encompasses various facets, including investment in Fisker, collaborative development of EV platforms, and manufacturing in North America. However, the realization of any agreement hinges on completing due diligence, negotiations, and signing definitive agreements.
Earlier this month, Fisker announced its intention to procure extra funds due to the inadequacy of its current resources to meet its financial obligations over the next 12 months. The company also cautioned that “there is substantial doubt about its ability to continue as a going concern.”
Fisker (NYSE: FSR) Stock Reaction
FSR stock plunged 15.57% to close at $0.15 on Monday. The traders had exchanged hands with 291,820,448 (291.82 million) shares compared to the average daily trading volume of 70.97 million. Fisker stock is down more than 91.6% in 2024 and over 97% in the last 12 months.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
