Polestar Automotive Holding UK Limited PSNY Shares traded higher on Wednesday after the company announced it had secured $950 million in external financing.
The details:
Polestar Automotive said the financing was provided by 12 international banks in the form of a three-year loan. Polestar said it will provide the company with the necessary funds to finance the next phase of its development and will cover the majority of its estimated financial needs.
The company is also implementing a comprehensive efficiency program with a 10% workforce reduction starting in mid-2023 and another 15% workforce reduction to follow in 2024.
“Obtaining funding from a syndicate of global banks reflects our partners’ support for Polestar’s growth journey. Together with Geely’s full financial support and access to innovative technologies and engineering expertise, we have strengthened our path to projected cash flow breakeven in 2025,” he said Thomas Ingenlath, CEO of Polestar.
Polestar Automotive will release fourth-quarter financial results before the market opens Thursday and will host a conference call at 8 a.m. ET to discuss the results. The company is expected to post losses of 15 cents per share and quarterly revenue of $756.514 million, according to Benzinga Pro estimates.
Related news: Why Adial Pharmaceuticals stock is exploding
PSNY Price Action: According to Benzinga Pro, Polestar Automotive shares were up 19.5% at $1.78 at the time of publication.
Image: Pete Linforth from Pixabay