Lotus Technology announced that it has signed a convertible note agreement worth approximately $110 million from strategic shareholders. The private placement signals continued confidence in Lotus Technology’s growth and strategic vision. The funds will bolster the company’s cash balance and support further expansion. The transaction is expected to close shortly, subject to customary conditions. Detailed terms are set out in a Form 6-K filed with the SEC. CEO Qingfeng Feng thanked shareholders for their support and highlighted the company’s commitment to sustainable growth.
positive
Secured $110 million investment through convertible notes; strengthened cash position to support growth; reflects shareholder confidence in strategic vision.
Negative
The investment is subject to customary closing conditions.
The $110 million convertible note agreement represents a significant inflow of liquidity into Lotus Technology. This type of investment allows shareholders to convert their bonds into shares, demonstrating strong confidence in the company’s future performance. Convertible notes are hybrid financial instruments that offer the benefits of debt (regular interest payments) while also providing the option to convert to shares if the company’s share price performs well. For retail investors, this indicates that existing shareholders expect the company’s share price to rise, providing potential upside.
Considering the competitive luxury electric vehicle market, this investment could increase LotusTech’s financial stability and facilitate product development, market expansion, and operational enhancement. However, investors should be aware of the possible dilution of existing shares if the bonds are converted into shares. Overall, this move could lead to future growth for LotusTech, but retail investors should monitor how effectively the company utilizes this capital.
The luxury electric vehicle sector is rapidly evolving, facing increasing competition from both traditional automakers and new entrants. This investment in Lotus Tech is a strategic move to strengthen its market position. The company’s growth strategy and focus on sustainability are aligned with market trends for environmentally friendly and innovative vehicles. The funds will support continued research and development, marketing efforts and expansion into new markets, which are essential to remain competitive.
It’s important to note that for retail investors, the timing of this investment could be important. As the market for electric vehicles expands, Lotus Tech’s solid cash reserves will enable it to weather market fluctuations and invest in emerging technologies. However, investors should consider broader market conditions and potential risks that could affect the pace of growth in the sector, such as regulatory changes or an economic downturn.
June 24, 2024 – 7:00 PM
NEW YORK, June 24, 2024 (GLOBE NEWSWIRE) — Lotus Technology Inc. (“Lotus Tech” or the “Company”), a leading global manufacturer of premium electric vehicles, today announced that it has entered into a convertible note agreement for aggregate proceeds of approximately $110 million1 through a private placement with existing strategic shareholders (the “Investment”). The Investment demonstrates shareholders’ continued confidence in Lotus Tech’s growth strategy and prospects. The transaction is subject to customary closing conditions and is expected to close in the near future. A description of the material terms of the Convertible Purchase Agreement and the Notes is included in the Company’s Current Report on Form 6-K filed with the U.S. Securities and Exchange Commission.
This investment underscores shareholders’ strong belief in the company’s vision and core values, and proceeds from the investment are expected to further strengthen the company’s cash position.
“We thank our shareholders for continuing to invest in and demonstrate confidence in our performance and growth potential,” said Qingfeng Feng, CEO of Lotus Tech. “We look forward to further executing on our strategy, accelerating our growth, and above all, advancing our mission to lead the industry into a more sustainable future.”
About Lotus Technology
Lotus Technology operates across the UK, EU and China. The company is focused on world-class research and development of next generation automotive technologies, including electrification and digitalisation, and is dedicated to delivering luxury lifestyle battery electric vehicles. For more information about Lotus Technology, please visit www.group-lotus.com.
Forward-Looking Statements
This press release contains statements that may be considered “forward-looking” statements pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, are forward-looking statements. In some cases, forward-looking statements can be identified by terms such as “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “potential,” “forecast,” “plan,” “seek,” “future,” “propose,” “continue,” or the negative or variations of these terms or similar terminology, although not all forward-looking statements contain such terminology. Forward-looking statements involve inherent risks and uncertainties, including those identified under the heading “Risk Factors” in Lotus Tech’s registration statement on Form F-4 filed with the Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Lotus Tech undertakes no obligation to update any forward-looking statements, except as required by applicable law.
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Investor and Media Inquiries
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1 The principal amount of each Note is based on the applicable exchange rate two business days prior to the issuance date. This estimated principal amount is based on the exchange rate on June 24, 2024.
FAQ
What investments has Lotus Technology secured recently?
Lotus Technology secured $110 million in investment through a convertible note agreement.
How will the $110 million investment impact Lotus Technology?
The $110 million investment will strengthen Lotus Technology’s cash position and support its growth strategy.
Who invested in Lotus Technology’s recent $110 million convertible note deal?
The investment was made by Lotus Technology’s existing strategic shareholders.
When do you expect to close Lotus Technology’s $110 million convertible note agreement?
The transaction is expected to close in the near future, subject to customary closing conditions.
Where can I find the full terms of Lotus Technology’s $110 million convertible note agreement?
Further terms are set out in the company’s Form 6-K filing with the U.S. Securities and Exchange Commission.
