Manufacturer of luxury cars Aston Martin will issue new shares worth up to 20% of the existing capital stock. The automaker will seek additional funds to survive the effects of coronavirus crisis. Aston Martin shares fell on the news more than 11%.
the Consortium Overseas Limited Yew Tree will get 25% bonus, and Prestige Motors, which is steadily reducing its stake in the company, formerly a major shareholder, plans to buy around 8%, the company said.
Aston Martin may have recorded the strongest loss in the first quarter after a sales decline by almost a third. In the second quarter autowinder expects a further fall in retail and wholesale sales.
the Company cut jobs and streamline its activities, as it seeks to reduce its cost and reduce the production of sports cars.
“We achieve very good results on the first priority — to restore balance between supply and demand and reduce dealer inventories as soon as we restart the business,” said Chairman of the Board, Lawrence Stroll (Lawrence Stroll).
Aston Martin cars which invariably rides James bond, also announced that it has received approval for a loan loan program in the event of an interruption of large business in the amount of 20 million pounds (of 24.83 million).
the Company, like other automakers, was faced with coronavirus crisis that has led to the fact that in April sales of new British cars fell by 97% in the annual comparison, reaching the lowest level for the entire month of February 1946.