Ebusco proposes partnership with Chinese battery manufacturer Gotion (that would be investing in Ebusco)

Ebusco is willing to establish a strategic partnership with Chinese battery manufacturer Gotion. Within the partnership, Gotion is considering “an equity participation in Ebusco“, the bus OEM shares in a press note released today, 8th November 2024. However, the deal is presented as a “proposed” partnership, therefore such agreement is not yet officially ratified.

Today Ebusco also announces the launch of a capital increase by means of a Rights Issue, for an amount of EUR 36 million. Just a few days ago, Ebusco stated investors are interested in supporting the right issue. This followed the announcement, on 25th October, that Ebusco’s shareholders adopted all resolutions on the agenda of 24th October’s meeting in order to go ahead with the turnover plan, put its operations in order and avoid bankruptcy, that appeared quite close after the loss of a court case against Qbuzz on the 23rd October.

Ebusco to partner with Gotion

Gotion, listed on the Shenzhen Stock Exchange, has been a longstanding battery supplier to the Dutch company since 2018.

The partnership envisages “mobilizing Gotion’s advanced battery technology, allowing the further development of Ebusco’s lightweight buses with a substantially longer range battery, supporting Ebusco in the international expansion of the lightweight bus in Asia, and cooperation in relation to the expansion of Ebusco’s maritime offering”, Ebusco states in the press note.

What is particularly interesting, Gotion will support Ebusco to explore the possibilities to introduce the lightweight Ebusco 3.0 buses to the markets in Asia with external bus manufacturers. This collaboration is in line with its strategy to license out its Ebusco 3.0 lightweight technology outside the European market.

Gotion to invest in Ebusco?

As mentioned above, Gotion is considering to cement the partnership with an equity participation in Ebusco. To that end, “Ebusco will offer Gotion excess shares, i.e. shares for which no rights have been exercised in the rights issue that Ebusco has announced today. This participation will reinforce Ebusco’s equity base. If there are insufficient shares left (because of a high take-up in the rights issue), Ebusco will propose a separate share issuance to Gotion at an upcoming General Meeting of Shareholders, further strengthening Ebusco’s balance sheet. Gotion will also be invited to propose representation on Ebusco’s supervisory board“.

Christian Schreyer, CEO of Ebusco, comments concerning the launch of capital increase: “We are proud that we have now reached the milestone of the rights issue launch after receiving shareholder support in our EGM last month. We are also thankful that we have been able to receive various indications of interest to participate in the rights issue from a number of our existing shareholders, in combination with the support from Heights and Gotion’s intention to become a shareholder in our company. I am now CEO of Ebusco for more than two months and my conviction on the quality of Ebusco’s products, our people and the strength of the underlying market fundamentals has only grown over time. As previously communicated, Ebusco is going through a very difficult phase. A successful completion of the rights issue is therefore crucial for Ebusco to successfully implement the Turnaround Plan, restore the trust in Ebusco as a company for all our stakeholders, and, ultimately, for Ebusco to continue as a going concern”.