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Fisker gets short-term loan to remain afloat

By Claudia Assis

Unnamed institutional investor lends the embattled EV maker $3.5 million

Troubled EV maker Fisker Inc. late Monday said it raised additional capital from an unnamed existing institutional investor, but the shot in the arm was not enough for the stock, which remained flat in the after-hours session.

Fisker (FSRN), which has veered toward bankruptcy for months, said it raised $3.456 million from the investor, with the potential to increase that amount to $7.5 million.

It signed a securities purchase agreement in connection with the offering, which was for senior secured notes due in June. The offering closed on Thursday.

Fisker said it intends to use the proceeds to finance its expenses in a manner approved by the investor, who was unnamed.

The company last month withdrew its guidance for the year and said it continued to seek alternatives to remain afloat. It warned back in February that it was struggling, and started selling its EVs at a steep discount in March.

Shares of Fisker have lost 98% this year, contrasting with an advance of about 8% for the S&P 500 index SPX.

-Claudia Assis

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05-13-24 1638ET

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