A big interest repayment arrives Feb. 1, but Nio will probably come to an end of money ahead of time
Many reports came out on Jan. 15 that Nio had raised $1 billion in financing from Guangzhou Automobile Group (OTCMKTS: GNZUF ) wednesday.
Nonetheless, on the South China Morning Post reported that Guangzhou Automobile had confirmed that installment loan online wyoming it would potentially invest up to only $150 million in Nio thursday.
Nio Is Starving for Money
Nio’s third-quarter report had been released on Dec. 30, 3 months after the end of their matching quarter. The report shows cash that is nio’s was down seriously to just $274.3 million.
But on June 30, 2019, Nio had $503 million in money and opportunities readily available. Which means Nio lost $228.7 million when you look at the quarter that is third.
Therefore the business cannot manage to carry on burning through such considerable amounts of money.
Through the quarter that is third Nio burned through $228.7 million. Together with company probably burned through an identical quantity into the 4th quarter.
Will $150 Million Really Assist Nio?
Nio will probably need certainly to raise significantly more than $150 million to be able to endure. We estimate that by Dec. 31, 2019, the ongoing business had $45 million or less readily available
Why do i do believe therefore? Here’s what Nio stated about its cash stability within the report december:
“The Company runs with continuous loss and negative equity. The Company’s cash balance is maybe not sufficient to give you the desired working capital and liquidity for constant procedure within the next one year. The Company’s continuous procedure … is dependent on the Company’s capacity to get adequate outside equity or financial obligation funding.”