Taiwanese battery swap company Gogoro has signed a five-year credit agreement worth $345 million to boost liquidity amid uncertain economic conditions.
According to one bank, the loan came from a syndicate of 10 led by Mega International Commercial Bank. Regulatory filing.
Gogoro will use the funds to repay existing facilities, secure batteries for its batteries, support operations in Taiwan and provide working capital as needed, according to a company spokesperson.
The company has the option to extend the loan for another two years and even receive a discount if it continues to meet its carbon reduction goals.
The new funding comes a month after Gogoro released its second quarter earnings The results show that the company is still growing, but cautiously, given market and macroeconomic conditions. Gogoro’s revenue rose 5.3% year over year to $90.7 million; however, the impact of COVID on Taiwan and China led Gogoro CEO Horace Luke to cut full-year guidance from $460 million to $500 million to $380 million to $410 million.
After hitting a high of $5.55 a share in mid-September, Gogoro’s stock took a beating last week, bearish analyst Attributable to declining e-scooter sales in Taiwan and disappointing progress in foreign markets. Gogoro is currently trading at $4.10 after the market close on Wednesday.
Earlier this month, Gogoro launches its battery swap station and electric scooters in Israel And selected Singapore’s first electric vehicle battery replacement pilot.
In November last year, the company Swap station launched in Chinaoperating under the Huanhuan brand, a partnership between Gogoro and electric two-wheeler makers Yadea and DCJ. Gogoro also partners with Hero MotoCorp to launch battery swap network in India, and the Hero brand electric two-wheeler based on Gogoro technology. Gogoro has previously said it plans to launch its first exchange in New Delhi by the end of this year, but the company did not respond to TechCrunch’s request for updated guidance.
Gogoro goes public via merger April with a special purpose acquisition company (SPAC). The hype for SPACs is dwindling, and interest from the public market is dwindling. Now, a series of EV SPACs are grappling with production issues, inflationary pressures and supply chain bottlenecks that are driving down valuations and creating barriers to liquidity. recent, Two other EV SPACs, Nikola and Lucid Motors, say they need to raise more cash bring their vehicles to market.
“In today’s credit-prudent environment,” Gogoro said its ability to increase borrowing capacity and receive favorable terms and borrowing rates is a testament to the company’s partners who understand and support Gogoro’s vision and ability to grow.