ECARX Secures $65 Million Convertible Note Financing Prior to its Planned Business Combination with COVA Acquisition Corp.
Summary
The $65 million in convertible notes and previously announced $45 million in additional capital from strategic partners equates to $110 million, expecting to surpass the $100 million minimum available cash condition to close the business combinationLONDON, Nov. 14, 2022 /PRNewswire/ -- ECARX Holdings, Inc. ("ECARX" or the "Company"), a global mobility tech company, today announced that the Company has entered into an agreement with SPDB International (Hong Kong) Limited and CNCB (Hong Kong) Investment Limited for $65 million of convertible senior notes due 2025. The $65 million convertible note financing adds to the Companys $45 million in capital raised from strategic partners, Geely Holding Group and Luminar, and convertible note holder Lotus Technology, which was announced concurrently with the merger agreement entered into on May 26, 2022 between ECARX and COVA Acquisition Corp. ("COVA") related to the proposed business combination between ECARX and COVA.Ziyu Shen, ECARX Chairman and Chief Executive Officer, said, "This financing agreement brings ECARXs debut on the public markets one step closer and we expect to satisfy the $100 million minimum cash condition for the closing of the business combination. Additionally, we view this financing as a vote of confidence in our market position and believe it will help us facilitate the transition of the auto industry to connected and automated electrified vehicles."