Fisker Inc (NYSE:FSR) shares soared more than 15% on Monday after the California-based electric vehicle (EV) startup revealed it has restructured an agreement with an investor that will free up cash and allow it to pursue new opportunities.
Fisker said that it and its 2025 convertible notes investor have agreed upon a definitive agreement with an OEM partner and allowed for the release of intellectual property, enabling Fisher to pursue other strategic collaborations.
The investor has also agreed to waive all financial covenants related to restricted cash used for operations.
“I am pleased that we were able to reach an agreement with one of our investors that will provide increased flexibility and better position us to execute on potential strategic business deals," the company’s CEO Henrik Fisker said.
After rocketing as much as 40% higher earlier in the day, shares of Fisker had gained 15.4% at US$0.91 in the early afternoon on Monday.