Ebusco states investors are interested in supporting the right issue aiming at raising 36 million euros

Ebusco communicates today, 4th November, that the company “has now received indications of interest from a group of investors, including larger existing shareholders, to support the proposed rights issue through which the company seeks to raise EUR 36 million”.

This follows 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 shares have today a value of 2,73 €, and witnessed a -92% decrease in the last 12 months. The loss compared to the time when the company went public (October 2021) is -97%, as Ebusco’s shares value at that time was around 23 euros. However, in the last few days they registered a +45% growth.

Ebusco is going ahead raising equity

Ebusco currently holds €33 million in outstanding debt. Additionally, Ebusco anticipates incurring more penalties due to delays in deliveries, especially as bus production has been significantly slowed to reduce expenses.

The financial support, Ebusco states, would be through a combination of pre-commitments and underwriting. The company aims to launch the proposed rights issue as soon as possible and complete the transaction in November 2024.

At the time of the rights issue launch, further details including the issue price, number of shares to be issued and the exact timeline shall be published and set forth in a prospectus.

In addition, as announced on 24 October 2024, Ebusco is negotiating a partnership with one of its strategic suppliers. The terms of the partnership “provide for an equity injection into Ebusco strengthening its balance sheet, and cementing a long-term strategic partnership. Ebusco and the strategic supplier are progressing the discussions and it is expected that the details of the partnership will be announced ahead of the launch of the rights issue”, quoting the company’s statement.

Furthermore, “Ebusco has successfully negotiated another customer settlement. Under the settlement, Ebusco is released from the obligation to deliver 76 Ebusco 3.0 buses that Ebusco was unable to produce on time (editor’s take: the number of units suggests that the customer might be Nobina or Rouen). Also, the related contractual penalty amounts have been substantially reduced and will be payable in tranches over time, relieving the short-term pressure on Ebusco’s cash position. Some of the cancelled buses were already in an advanced stage of production. To further help Ebusco’s cash position, Ebusco will now proceed in selling those buses to other customers”. With these developments, Ebusco has made further incremental steps in solving legacy issues and putting the company back on track on its road to recovery”.