Aston Martin will raise additional funds for recoveryJune 26, 2020
The British automaker has announced its intention to issue additional shares in the amount of up to 20% of existing share capital, as the automaker is looking for additional funds to overcome the crisis caused by coronavirus.
Recall that in October 2018, the automaker’s stock prices plummeted from 19 pounds ($ 23.57) to 70 pence. Now the company is forced to issue an additional block of shares in order to attract new funds. The new owners, led by Canadian billionaire Lawrence Stroll, will receive 25% of the issued securities, and Investindustrial, which has steadily reduced its stake in the company, previously being the main shareholder, plans to buy about 8% of the new shares.
Aston Martin, which in May showed large losses in the first quarter after sales fell by almost a third, also said its sales were expected to continue to fall in the second quarter compared to the first. As a result of this, the company is forced to cut jobs and optimize its activities to reduce costs.
“We have achieved very good results on the priority task – rebalancing supply and demand and reducing the share of dealers, as we reload the business and restore exclusivity,” said Stroll, who is the chairman of the company and took office earlier this year after buying a 20 percent stake .
Aston Martin also announced that it has received approval for a loan under the Coronavirus Affected Business Support Program (CLBILS) of £ 20 million.
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