Ener1 (HEV) Helps Rescue Think City Electric Car Company From Bankruptcy
Think City just announced that it has received a $5.69 million bridge loan from investors, saving it (at least for now) from bankruptcy. Not surprisingly, the majority of the money is coming from Ener1.
Ener1 has a $70 million battery supply contract with the troubled electric car company. Will the financing help? Reuters quotes a written statement from Think:
"The financing will allow Think to focus its efforts towards the next stages of the restructuring process," Think said in a statement, adding that it aimed to raise permanent equity capital and gradually return to volume production.
Of course, Think estimates that it needs 100-200 million crowns of short-term financing to keep going. Today’s loan was equivalent to 40 million crowns, so there’s still a significant financing gap.
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