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Potential Nissan Deal Lost For Fisker, Putting Rescue Funds At Risk

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Potential Nissan Deal Lost For Fisker, Putting Rescue Funds At Risk

(CTN News) – Negotiations between Fisker and an automaker, reportedly Nissan, regarding an investment and collaboration have been terminated, putting at risk a separate short-term rescue fund effort.

Fisker announced in a regulatory filing on Monday morning that negotiations with the automaker had ended on March 22.

This was not explained in the report. In order to complete the transaction for the $150 million convertible note announced last week, the company was required to continue negotiations. A filing by Fisker indicates that it will request that the unnamed investor waive the closing condition.

Stocks of the startup plunged 28% after the opening of the stock market, and trading was halted.

Several ominous signs have been emerging for the endangered EV startup over the last few months.

In the early stages of the Ocean SUV’s development, Fisker has experienced challenges in meeting its internal sales goals, as reported by TechCrunch in January, which forced the company to pivot away from direct sales.

The quality of some of the cars that have been delivered has been affected by a number of problems – issues that Fisker has struggled to resolve at times, according to internal documents.

Last week, Fisker reported having only $121 million in the bank after laying off 15% of its staff (around 200 people) in February. As a result of the halt in production, the company has warned investors that without a fresh injection of cash, it will not be able to survive a year.

Despite talks with other automakers, such as Mazda, Fisker has only been able to obtain agreement from Nissan recently.

The company announced on Monday morning that it is reviewing other “strategic alternatives” to the Nissan tie-up, including “in or out of court restructurings, capital markets transactions (depending on market conditions), repurchases, redemptions, exchanges, and refinancing of its current debt, issuance of equity securities, the sale of assets or businesses, or other strategic transactions or measures..”

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