Aston Martin Lagonda has raised £211million in new financing to assist bolster its liquidity and fund future progress after issuing a revenue warning on Tuesday.
The struggling luxurious carmaker revealed it had issued £100million in new debt and obtained £111million from traders shopping for its shares for 100p every, a 7.3 per cent low cost to its closing share value yesterday.
Lawrence Stroll’s Yew Tree Consortium, which bailed out the corporate in early 2020, subscribed to about £50.5million of strange shares.
Following the fundraising, the enterprise mentioned it might finish 2024 with an anticipated liquidity place of roughly £500million.
Aston Martin introduced a deliberate share and debt inserting on Tuesday on the identical time it declared its second revenue warning in two months.
Because of what it known as a ‘minor delay’ in delivering a few of its ultra-exclusive Valiant automobiles, the corporate now forecasts its adjusted earnings earlier than nasties will complete £270million to £280million this yr.
Help: Aston Martin Lagonda has efficiently raised £211million in new financing to assist bolster its liquidity and fund future progress
The Warwickshire-based group mentioned it might ship round half of the 38 Valiant fashions by the top of 2024, with the rest coming early subsequent yr.
In September, Aston Martin minimize revenue steerage due to provide chain challenges and subdued demand from China, the world’s largest automotive market.
It additionally mentioned wholesale volumes have been set to say no as a substitute of develop, whereas free money stream is predicted to ‘stay detrimental’.
To attempt to flip issues round, the group has launched costly new ranges just like the DB12 and Vanquish and attracted vital funding from Chinese language automobile big Geely and Saudi Arabia’s Public Funding Fund.
Nevertheless, it has continued to make huge annual losses, together with a £239.8million pre-tax loss in 2023 and a £495million loss the yr earlier than, regardless of its automobiles promoting for report common costs.
In September, former Bentley Motors boss Adrian Hallmark grew to become the agency’s fourth chief government in 4 years.
Commenting on the financing bundle, Hallmark mentioned: ‘We thank our traders, together with our strategic traders who proceed to point out sturdy assist for the corporate, for his or her commitments and confidence in Aston Martin.
‘We at the moment are nicely positioned for progress, underpinned by the power of our model and the world-class product portfolio now we have dropped at market.’
It intends to speculate the cash on repaying money owed and capital investments associated to its £2billion five-year ‘transition to electrification’ plan.
The carmaker expects to launch its first battery-electric car in 2026, having beforehand anticipated bringing it to market subsequent yr.
Susannah Streeter, head of cash and markets, Hargreaves Lansdown, mentioned: ‘Aston Martin is perhaps identified for its affiliation with James Bond, however there is not any undercover agent in sight to drag it out of its newest scrape.’
Aston Martin Lagonda shares have been 4.8 per cent decrease at 102.7p on Wednesday morning, greater than 90 per cent down on its £19 IPO value.
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