A big interest repayment is due Feb. 1, but Nio will probably come to an end of money upfront
Numerous reports arrived on Wednesday, Jan. 15 that Nio had raised $1 billion in financing from Guangzhou vehicle Group (OTCMKTS: GNZUF ).
Nevertheless, on the South China Morning Post reported that Guangzhou Automobile had confirmed that it would potentially invest up to only $150 million in Nio thursday.
Nio Is Starving for Money
Nio’s report that is third-quarter released on Dec. 30, 3 months following the end of its corresponding quarter. The report shows Nio’s cash position was down seriously to just $274.3 million.
But on June 30, 2019, Nio had $503 million in cash and assets readily available. Which means Nio lost $228.7 million into the 3rd quarter.
So that the business cannot manage to carry on burning through such considerable amounts of money.
Through the third quarter, Nio burned through $228.7 million. Together with business probably burned through the same quantity within the 4th quarter.
Will $150 Million Really Assist Nio?
Nio will probably need to raise a lot more than $150 million to be able to endure. We estimate that by Dec. 31, 2019, the business had $45 million or less readily available
How come i believe therefore? installment loans montana online Here’s exactly what Nio stated about its money balance into the December report:
“The business runs with continuous loss and negative equity. The Company’s cash balance is not adequate to give the necessary working capital and liquidity for constant procedure within the next one year. The Company’s operation that is continuous is based on the Company’s capacity to get adequate outside equity or financial obligation funding.”