9:12 am, June 26, 2020
Aston Martin Lagonda will sell shares worth 20 per cent of its business in an effort to stem losses and recover from coronavirus.
The shares sale will raise around £190m and access to a credit line will give the firm $68m to pay 12 per cent interest.
In total the car maker is looking to raise £260m, according to the Financial Times, with shares making up half of its debt repayment with the other half being in cash.
The fundraising is the latest step in new chairman Lawrence Stroll’s plan in turning around the struggling car company.
In the three months to March, Aston Martin Lagonda recorded a £120m loss and the firm warned that average prices in Q2 will fall as it focuses on offloading unsold cars at showrooms that had been shut during lockdown.
It’s also been revealed that the company has been successful in its application for financial help from the government.
Aston Martin Lagonda will now receive a Coronavirus Large Business Interruption Loan totalling £20m.
The latest news comes as production of Aston Martin’s new DBX SUV resumes at the firms’s brand new factory in St Athan, Wales.
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