Smith EVs Needs IPO To Survive
Smith Electric Vehicles, which is using $32 million in taxpayer stimulus to practically give away its delivery trucks to corporations like Frito-Lay (owned by PepsiCo), Coca-Cola and Staples, is hemorrhaging money anyway and now is looking to an initial public offering to pay off debts and try to survive.
The Kansas City Star reported last week that Smith cut its production expectations and warning it is running low on cash, citing filings with the Securities and Exchange Commission. The company announced nearly a year ago it would seek $125 million through an IPO, but now says it hopes to raise about $76 million at a stock price of $16 to $18, according to a Kansas City Business Journal report.
Good luck with that. The Journal said the revenues generated “would help pay off a $16.5 million bridge loan, $1.3 million related to a legal settlement involving Smith’s British subsidiary, and $500,000 owed to former British partner Tanfield Group.”
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