Bond’s Favourite Fundraiser

‘Aston Martin Lagonda has recently secured approximately £111 million through an equity raise.’

This equity raise is part of a broader financing strategy that includes issuing £100 million in senior secured notes, bringing the total funds raised to £211 million.

The capital infusion will support Aston Martin’s electrification strategy and future investments.

The company has committed to a £2 billion investment plan from 2023 to 2027, focusing on developing electric vehicle technology and expanding its product lineup.

Despite the fundraising efforts, Aston Martin has issued a profit warning, forecasting that its annual core profit will fall short of 2023 levels.

Delivery delays of the ultra-exclusive Valiant models have caused this shortfall, with only half of the 38 units expected to reach customers by year-end.

Additionally, the company has faced challenges such as supply disruptions and weak demand in China.

Leading to a reduction in its production forecast by about 1,000 vehicles in September.

In June 2023, Aston Martin entered a strategic supply agreement with Lucid Group, a leading provider of electric vehicle technologies.

This partnership grants Aston Martin access to Lucid’s advanced powertrain and battery technology, which is central to Aston Martin’s all-new in-house Battery Electric Vehicle platform.

Aston Martin’s recent equity raise and debt issue are pivotal steps in its transition towards electrification.

While the company faces immediate financial challenges, these strategic moves aim to position it competitively in the evolving automotive landscape.

‘Bond’s Favourite Fundraiser, Aston Martin—shaken, not stirred, by another cash injection.’