20th Apr 2020 09:44
(Alliance News) - Aston Martin Lagonda Global Holdings PLC on Monday said it has now received complete acceptances for its rights issue of new shares, as new Chair Lawrence Stroll said the company will be fulfilling pre-orders for the new DBX sports utility vehicle.
The luxury car manufacturer said it received valid acceptances for 1.2 billion new shares in its 4-for-1 rights issue. As at Monday, Aston Martin's issued share capital comprises 1.5 billion shares.
The stock was trading 8.1% higher at 62.40 pence each on Monday morning in London. The carmaker's IPO price back in 2018 was 1,700p.
In January, Aston Martin announced a GBP500 million funding plan as part of its efforts to bolster its finances, which included an investment by Formula 1 team Racing Point owner Stroll. Mercedes Formula 1 team principal Toto Wolff bought a stake of 0.95% via investment vehicle ErsteAM, after the rights issue.
The FTSE 250-listed company on Monday also confirmed that Stroll has commenced in his role as executive chair, adding that Penny Hughes has stepped down as chair and director. Additionally, Dante Razzano - who was hired as a director in September 2018 - will be leaving the company after the conclusion of the placing and rights issue.
Upon assuming the role, Stroll said the company's most "pressing objective" is to plan to restart manufacturing operations after the "world starts to emerge from the Covid-19 pandemic," particularly to start production of the brand's first SUV, the DBX.
He added that alongside the return to production, the company will be undertaking a rebalancing of supply to demand for its core models and will start to ramp-up marketing initiatives to continue to build its order book.
"We will continue to focus significant effort and investment into the continued development of our range of mid-engined cars. These are a crucial next stage in the expansion of our product line-up. Descended from the awesome Aston Martin Valkyrie hypercar, the Valhalla and Vanquish are set to position Aston Martin firmly in this sector and complete our range of highly engineered and beautiful sports cars. In the longer term we intend to commit to producing electric cars to combine performance and luxury with environmental sustainability," Stroll said.
By Ife Taiwo; [email protected]
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