Gothenburg-based Polestar, a premium electric vehicle firm, announced that it has secured a $200M (approximately €174M) equity investment from PSD Investment Limited, an existing investor.
PSD Investment is an entity controlled by Mr. Shufu (Eric) Li, Founder and Chairman of Geely Holding Group.
Under the terms of the securities purchase agreement, Polestar will issue and sell 190,476,190 newly issued Class A American Depositary Shares (ADSs) to PSD Investment through a private investment in public equity (PIPE) transaction.
The Class A ADSs will be sold at $1.05 per share, representing the volume-weighted average closing sale price over the five consecutive trading days before the signing.
As part of the transaction, and in alignment with governance considerations, PSD Investment intends to convert 20,000,000 of its Class B ADSs into Class A ADSs before the PIPE closing.
This move ensures that PSD Investment’s overall voting power remains below 50% post-transaction.
The Swedish company intends to use the proceeds from the equity investment for working capital requirements and general corporate purposes.
The announcement comes over a year after securing $950M (approximately €877M) as a three-year loan facility from 12 leading international banks, including BNP Paribas, Natixis, Standard Chartered, BBVA, HSBC, and SPDB.
Polestar: Premium electric performance vehicle manufacturer
Founded in 2017 by Volvo Cars and Zhejiang Geely Holding, Polestar is a global pure-play, premium electric performance vehicle manufacturer.
The Swedish company plans to have a line-up of five performance EVs by 2026. The company aims to produce a truly climate-neutral car by 2030.
The company has three models in its line-up: Polestar 2, Polestar 3, and Polestar 4.
Planned models include the Polestar 5 four-door GT (to be introduced in 2025), the Polestar 6 roadster, and the Polestar 7 compact SUV.
With its vehicles currently manufactured on two continents, North America and Asia, Polestar plans to diversify its manufacturing footprint further, with production of Polestar 7 planned in Europe.
