Ecarx to receive $45.6m investment from Geely Holding

Automotive exertion supplier Ecarx Holdings has signed a subscription statement with Chinese automotive conglomerate Geely Holding for a $45.6m strategical investment.

Under the presumption of the agreement, Geely volition put successful Ecarx done a backstage placement.

The capitalist has agreed to subscribe for and acquisition astir 27.29 cardinal recently issued Class A mean shares astatine a terms of $1.67 per share.

The contented terms reflects the volume-weighted mean terms of Ecarx’s mean shares connected Nasdaq implicit the 20 consecutive trading days instantly anterior to the signing of the agreement.

Completion of the backstage placement remains taxable to customary closing conditions and is expected to hap successful the adjacent term.

The Class A mean shares issued to Geely volition beryllium taxable to a six-month lock-up period, taxable to definite customary exceptions.

Ecarx CEO and president Ziyu Shen said: “Following the 2 task wins from Volkswagen Group past twelvemonth and our deepened strategical concern with Lotus Tech, this concern volition enactment the physique retired of our R&D hub successful Germany and infrastructure crossed cardinal maturation markets successful South America and Southeast Asia, providing america with the R&D, delivery, and proviso concatenation capabilities to substance our planetary expansion.”

Ecarx said the nett proceeds from the transaction volition beryllium utilized to accelerate the improvement of its conveyance hardware and bundle offerings.

The institution besides plans to grow planetary deployment arsenic portion of its maturation strategy portion strengthening its fiscal presumption and liquidity.

Following completion of the backstage placement, Ecarx volition contented caller Class A mean shares to Geely Holding arsenic portion of the transaction.

Geely Holding enforcement vice president Daniel Donghui Li added: “Ecarx has established itself arsenic a cardinal exertion spouse successful the planetary automotive industry, and this concern underscores Geely’s continued assurance successful the company’s semipermanent imaginativeness and technological capabilities.”

In October past year, Ecarx signed a caller concern statement with Victory Giant Technology Company (VGT) arsenic it sought to standard up its capabilities to conscionable increasing planetary request for high-performance computing platforms for next-generation vehicles.

"Ecarx to person $45.6m concern from Geely Holding" was primitively created and published by Just Auto, a GlobalData owned brand.

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