Lotus Technology Secures Investment from Strategic Investor

Rhea-AI Summary

Lotus Technology has announced a convertible bond agreement worth approximately $110 million from a strategic shareholder. This private placement demonstrates ongoing confidence in Lotus Tech's growth and strategic vision. The funds will enhance the company's cash position, supporting further expansion. The deal is expected to close soon, pending standard conditions. The detailed terms are available in Form 6-K filed with the SEC. CEO Qingfeng Feng expressed gratitude for the shareholder's support and emphasized the company's commitment to sustainable growth.

Positive

• Secured $110 million investment via convertible bond.
• Enhances cash position, supporting growth.
• Reflects shareholder confidence in strategic vision.

Negative

• Investment subject to customary closing conditions.

Insights

Financial Analyst

The convertible bond agreement for $110 million indicates a significant liquidity influx for Lotus Technology. This type of investment allows the shareholder to convert bonds into equity, signaling strong confidence in the company's future performance. Convertible bonds are hybrid instruments, offering the benefits of debt (regular interest payments) while giving the option to convert to equity if the company's stock performs well. For retail investors, this suggests that existing shareholders expect the company's stock to appreciate, providing a potential upside.

Considering the luxury electric vehicle market, which is highly competitive, this investment can enhance Lotus Tech's financial stability, facilitating product development, market expansion and operational enhancements. However, investors should be aware of potential dilution of existing shares if the bonds are converted into equity. Overall, this move likely positions Lotus Tech for future growth, but retail investors should monitor how effectively the company utilizes this capital.

Market Research Analyst

The luxury electric vehicle sector is rapidly evolving, with increasing competition from both traditional automakers and new entrants. This investment in Lotus Tech is a strategic move to bolster its market positioning. The company's emphasis on growth strategy and sustainability aligns with market trends towards eco-friendly and innovative vehicles. This funding will likely support continued R&D, marketing efforts and expansion into new markets, which is essential for maintaining a competitive edge.

For retail investors, it’s important to note that the timing of this investment could be critical. As the market for electric vehicles expands, having a solid cash reserve enables Lotus Tech to navigate market fluctuations and invest in emerging technologies. However, investors should consider the broader market conditions and potential risks, such as regulatory changes and economic downturns, which could impact the sector's growth pace.

NEW YORK, June 24, 2024 (GLOBE NEWSWIRE) -- Lotus Technology Inc. (“Lotus Tech” or the “Company”), a leading global luxury electric vehicle maker, today announced that it has entered into a convertible bond agreement with an aggregate principal amount of approximately $110 million¹ through a private placement from its existing strategic shareholder (the “Investment”). The investment marks the shareholder’s continuous confidence in Lotus Tech’s growth strategy and outlook. The transaction is subject to customary closing conditions and the closing is expected to take place in the near future. A description of the material terms and conditions of the convertible purchase agreement and the notes is included in the Company’s current report on Form 6-K filed with the U.S. Securities and Exchange Commission.

The Investment underscores the shareholder’s strong belief in the Company’s vision and core value. The expected funds from the Investment will further strengthen the Company’s cash position.

“We are grateful to our shareholders as they continue to invest and demonstrate confidence in our performance and growth potential,” said Mr. Qingfeng Feng, Chief Executive Officer of Lotus Tech. “We look forward to further executing our strategy, accelerating our growth, and importantly, furthering our mission to steer the industry towards a more sustainable future.”

About Lotus Technology
Lotus Technology Inc. has operations across the UK, the EU and China. The Company is dedicated to delivering luxury lifestyle battery electric vehicles, with a focus on world-class R&D in next-generation automobility technologies such as electrification, digitalisation and more. For more information about Lotus Technology Inc., please visit www.group-lotus.com.

Forward-Looking Statements
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expect”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “potential”, “forecast”, “plan”, “seek”, “future”, “propose” or “continue”, or the negatives of these terms or variations of them or similar terminology although not all forward-looking statements contain such terminology. Forward-looking statements involve inherent risks and uncertainties, including those identified under the heading “Risk Factors” in the registration statement on Form F-4 filed by Lotus Tech with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Lotus Tech undertakes no obligation to update any forward-looking statement, except as required under applicable law.

Contact Information
For investor and media inquiries
Demi Zhang
ir@group-lotus.com

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¹ The principal amount of each note will be based on the applicable exchange rate two business days prior to the issue date. This estimated principal amount is based on the exchange rate on June 24, 2024.

FAQ

What recent investment did Lotus Technology secure?

Lotus Technology secured a $110 million investment through a convertible bond agreement.

How will the $110 million investment impact Lotus Technology?

The $110 million investment will strengthen Lotus Technology's cash position and support its growth strategy.

Who invested in Lotus Technology's recent $110 million convertible bond agreement?

The investment was made by an existing strategic shareholder of Lotus Technology.

When is the closing of Lotus Technology's $110 million convertible bond agreement expected?

The closing is expected to take place in the near future, pending customary conditions.

Where can I find the detailed terms of Lotus Technology's $110 million convertible bond agreement?

The detailed terms are available in the company's Form 6-K filed with the U.S. Securities and Exchange Commission.