Polestar Automotive Holding Uk Plc (NYSE:PSNY) shares are trading higher Friday morning, likely driven by continued momentum from a major financing announcement aimed at fortifying the company’s balance sheet. The electric vehicle maker recently secured a $300 million equity investment from Banco Bilbao Vizcaya Argentaria (BBVA) and Natixis.
- Polestar Automotive shares are powering higher. Why is PSNY stock surging?
What To Know: Under the agreement, the two institutions invested $150 million each, purchasing Class A American Depositary Shares at $19.34 per share, a figure based on the three-month volume-weighted average price.
To secure the investment, the banks entered a put option arrangement with a subsidiary of Geely Sweden Holdings, providing a potential exit path in three years.
In a concurrent move to improve financial health, Geely Sweden Holdings agreed to a debt-to-equity conversion of approximately $300 million in outstanding principal and interest owed by Polestar. CEO Michael Lohscheller noted that these combined transactions significantly enhance the company’s liquidity position.
The market has responded enthusiastically to the capital injection. Polestar shares have jumped 50% this week following the initial news. With the transactions expected to have closed by Tuesday, Friday’s upward movement suggests sustained investor confidence in the automaker’s strengthened fiscal outlook.
Benzinga Edge Rankings: Data from Benzinga Edge indicates a Momentum score of 2.13 for Polestar, contrasting with negative signals across its short, medium, and long-term price trends.
PSNY Price Action: Polestar Automotive shares were up 4.42% at $17.94 at the time of publication on Friday, according to Benzinga Pro data.
Support levels appear to be forming around the recent low of $16.41, which could provide a buffer against further declines. Conversely, resistance is likely to be encountered near the $18.20 level, where the stock peaked during the session, and further up at the psychological barrier of $20.
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