EuroSports Global plans to raise up to $3.3 million by placing out convertible bonds, in yet another round of fundraising to drive the growth of its electric scooter venture, Scorpio Electric.
The bonds, to be placed out by Evolve Capital, are for a three-year term and carry an interest of 4%.
The placement "will improve its cash flow to further support the working capital requirements of the group, which includes the upcoming production of the Scorpio Electric X1 and development of future Scorpio Electric products," says EuroSports.
"We are incredibly excited about the potential of our X1 in the premium EV two-wheeler market," says Melvin Goh, executive chairman and CEO of EuroSports, better known for its car distributorship business.
"We have invested in the X1 to deliver advance technical specifications, performance and technology. As EV adoption accelerates over the next decade, Scorpio Electric will be perfectly positioned to become a market leader," he adds.
EuroSports, better known for distributing high-end sports cars here, announced plans to go into the electric motorcycle market back in Dec 2018.
Back then, it announced that wholly-owned EuroSports Technologies had received $2 million in seed capital, with a commitment of another $3 million subject to certain milestones.
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On Oct 2021, EuroSports says its electric motorcycle unit, Scorpio Electric, has launched its X1 model "globally" and is taking pre-orders.
This January, EuroSports announced that an unnamed investor has put US$5 million into Scorpio Electric, valuing it at US$150 million. With this investment, EuroSports' stake in the subsidiary will be reduced from 75.05% to 72.37%.
EuroSports Global shares last changed hands at 19 cents.
