Polestar Secures $400M Equity Investment
Polestar announced a $400M equity investment by Feathertop Funding and Standard Chartered Bank with $200M each. Concurrent with the purchase, these financial institutions have each entered into a put option arrangement with a wholly-owned subsidiary of Geely Sweden Holdings, which provides the financial institutions with an exit path, if needed, in three years with certain returns, as part of this equity financing arrangement. The terms are similar to the equity financing arrangements announced by the company in December 2025. Following the closing of the transaction with Sumitomo Mitsui Banking and Standard Chartered Bank, neither financial institution will own more than 10% of Polestar's outstanding equity. The price per Class A ADS to be purchased at the closing will be $19.34, which is the same price as in the equity financing in December. The financial institutions will not have any restrictions on the sale of the Class A ADSs they receive, subject to any applicable securities laws. The transactions are expected to close by February 5 as no regulatory approvals are required.
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Polestar Secures $400 Million Equity Investment
- Investment Overview: Polestar announced a $400 million equity investment from Feathertop Funding Limited, with Sumitomo Mitsui Banking Corporation and Standard Chartered Bank each contributing $200 million, reflecting strong investor confidence in the company's growth prospects.
- Exit Mechanism: The financial institutions have entered into a put option arrangement with a wholly-owned subsidiary of Geely Sweden Holdings, providing an exit path within three years, which enhances the attractiveness of the investment by ensuring potential returns.
- Price Stability: The purchase price for each Class A ADS is set at $19.34, the same as in the December 2025 financing, and the lack of restrictions on the sale of ADSs will help maintain market liquidity and investor interest.
- Future Outlook: CEO Michael Lohscheller stated that the new financing will further enhance the company's liquidity and balance sheet, allowing Polestar to focus on achieving its sustainability goals after a record year of retail sales.
Polestar Secures $400 Million Financing, Stock Rises
- Financing Structure Enhancement: Polestar announced a $400 million equity financing, split evenly between Feathertop Funding and Standard Chartered Bank, which strengthens its balance sheet at a critical point in its growth cycle.
- Exit Mechanism Design: Investors entered put option agreements with a wholly owned subsidiary of Geely Sweden Holdings, allowing banks to sell their stakes back after three years under predefined return conditions, providing a structured exit if market conditions change.
- Significant Sales Growth: In 2025, Polestar's retail sales surged 34% year-on-year to 60,119 cars, demonstrating strong demand and growth potential in the electric vehicle market.
- Positive Market Reaction: Following the financing announcement, Polestar's stock traded over 2% higher in Monday's premarket, although retail sentiment on Stocktwits remained in 'bearish' territory, indicating cautious market outlook.
