Fisker shares rise by 30 percent: Terminated agreement ensures price reversal and debt reduction

Fisker shares rise by 30 percent: Terminated agreement ensures price reversal and debt reduction

According to a report by www.deraktionaer.de,

Fisker, the US electric car start-up that has recently been struggling with staffing and production problems as well as horrific share price losses, saw its shares rise around 30 percent on Monday. This increase was triggered by the company's announcement that it had entered into an additional agreement with a convertible note creditor. This agreement includes the release of all intellectual property liens subject to a final deal with a strategic OEM partner, which would enable new strategic collaborations. Additionally, Fisker converted some of its debt into stock, reducing its remaining liability by $185.5 million.

These steps not only reduce the debt burden, but also strengthen the company's equity. This is a positive move for Fisker after the company faced delays in vehicle deliveries and a reduction in production guidance. The internal problems, including the postponement of quarterly reporting and the disclosure of significant weaknesses in internal control mechanisms, led to an internal crisis.

Investors reacted positively to the news, leading to the rise in stock prices. However, it remains to be seen whether Fisker can solve the operational problems in the long term. The start-up's long-term plans are still exciting and the stock should be kept on the watchlist.