LOS ANGELES - Fisker Inc. (OTC:FSRN), an electric vehicle manufacturer, has secured $3.46 million in funding through a securities purchase agreement with an institutional investor. The transaction, which involved the sale of senior secured notes, closed on May 10, 2024. These notes, due on June 24, 2024, carry an interest rate tied to the three-month Secured Overnight Financing Rate plus 12%.
The capital raised from this offering is earmarked for expenses within the budget approved by the investor. There is also a provision for the potential increase of the principal amount of the notes to $7.5 million.
Fisker has stated that this press release is not an offer to sell the securities, and the sale of these securities will not occur in any jurisdiction where such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of that jurisdiction.
Further details regarding the offering can be found in the company's Form 8-K filed with the Securities and Exchange Commission (SEC) in conjunction with this press release.
This news is based on a press release statement from Fisker Inc., which is known for developing sustainable electric vehicles and aims to be the leading e-mobility service provider. The company, however, has cautioned that forward-looking statements within the press release are subject to risks and uncertainties that could cause actual results to differ from projected outcomes.
These include potential delays in vehicle design, manufacturing, regulatory approvals, and launch, as well as the ability to enter into necessary manufacturing contracts and retain key personnel.
Investors and interested parties are advised to consider the risk factors outlined in Fisker's SEC filings, including its Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, when evaluating such forward-looking statements.
InvestingPro Insights
Fisker Inc. has recently made headlines with its new funding, but what does the financial data say about the company's current standing? According to InvestingPro data, Fisker's market capitalization stands at a modest $58.74 million. This figure can give investors a sense of the company's size and how it stacks up against competitors.
Moreover, the company's significant revenue growth over the last twelve months, at an astonishing 79690.35%, indicates a rapid expansion, which could be a sign of Fisker's increasing market presence in the electric vehicle industry.
Still, it is not all smooth driving for Fisker. The company's gross profit margin is deeply in the negative territory at -104.78% for the last twelve months as of Q4 2023, reflecting costs that exceed revenues. This is a critical metric that investors should monitor, as it could impact the company's financial sustainability. Furthermore, Fisker's stock has experienced a dramatic price total return of -99.43% over the last year, indicating significant volatility and potential risk for investors.
InvestingPro Tips for Fisker highlight several challenges the company faces. Fisker operates with a significant debt burden and may have trouble making interest payments on its debt. This is particularly relevant given the recent funding news and could affect the company's financial flexibility. Moreover, analysts do not anticipate the company will be profitable this year, which is an essential consideration for those looking at the long-term viability of their investment.
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