Fisker Inc. shares rebounded. on Monday after the struggling electric car maker unveiled an agreement with an institutional investor that would free up cash to run the company.
CEO Henrik Fisker said: “I am pleased that we have been able to reach an agreement with one of our investors that will provide greater flexibility and put us in a better position to execute potential strategic business deals.”
stock FSR,
It rose 1.4% in pre-market trading, putting it on track to snap a seven-session losing streak. This streak was the longest since the 10-day losing streak that ended on January 27, 2022.
is reading: Fisker loses its biggest bullish stock as the electric car maker’s stock destroys its value.
The stock has also endured a 13-session winless streak, with the only day it did not fall this year being January 9, when it closed flat.
But over the past 13 sessions, the stock has traded higher on a daily basis nine times (trading as high as unchanged once), meaning buying interest has been strong on most days only to fade at the close.
Read also: Stop selling Fisker stock as ‘easy profits’ were made on short trades – CFRA.
Fisker disclosed Monday in an 8-K filing with the U.S. Securities and Exchange Commission that an unnamed institutional investor holding its 0% secured convertible debt due in 2025 had entered into an amendment and assignment agreement.
Among parts of the agreement, all financial covenants related to Fisker’s cash reserves were waived, making the company’s unrestricted cash available for use.
The agreement also includes a waiver of any remaining damages resulting from Fisker’s previous late filing of its audited 10-Q report on results for the quarter ending September 30.
“Among other matters set forth in the filing, Fisker and the investor have agreed that upon a definitive agreement with a strategic partner OEM (original equipment manufacturer), any liens on intellectual property will be released, enabling the company to continue strategic cooperation.” Fisker said in a statement. “In addition, the amended agreement waives all financial covenants with respect to restricted cash used in operations.”
Fisker stock is down 54.9% year to date through Friday and is down 85.5% over the past three months. By comparison, the Global