Shares of cash-strapped electric vehicle maker Fisker (OTC:FSRN) are in focus after the company received a $3.5 million lifeline from an existing investor. The troubled automaker has been struggling to keep its head above water in recent times and is slated to report its first-quarter results later this week.
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A Much-Needed Liquidity Boost
Fisker has raised nearly $3.5 million by offering senior secured debt to an existing institutional investor. The securities purchase agreement also provides the potential to increase the gross proceeds for Fisker to around $7.5 million.
Enough to Turn FSRN’s Fortunes?
The much-needed cash lifeline comes amid a series of troubles for Fisker. Earlier this year, Fisker’s discussions for a potential deal with a major automaker fell apart. In the aftermath, its shares were delisted from the NYSE due to low price levels in the stock. The delisting resulted in Fisker defaulting on some of its convertible debt due in 2025.
In recent times, Fisker has also offered substantial price reductions for its Ocean SUV as it struggles to generate sales. Concurrently, the company has added multiple new dealerships in the U.S. over the past few weeks. However, these moves have largely failed to boost Fisker’s share price, which has lost nearly 99.65% of its value over the last three years.
This week, analysts expect Fisker to report a net loss per share of $0.17 for the first quarter. Notably, Fisker has reported consecutive net losses over the past few years.
Is Fisker a Buy, Sell, or a Hold?
Overall, the Street has a Hold consensus rating on the company, alongside an average FSRN price target of $1.50.
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