© Reuters VinFast (VFS) announces billion dollar share deal with Yorkville
Vietnamese electric vehicle manufacturer VinFast (NASDAQ:) announced on Friday that it has initiated a share subscription agreement of potentially $1 billion with the U.S.-based fund Yorkville Advisors, aiming to secure financial backing for its international market growth.
According to VinFast’s submission to the U.S. securities authority, the company retains the choice, but not the obligation, to prompt Yorkville to subscribe to as much as $1.0B worth of ordinary shares in VinFast at any point within the agreement’s duration.
“This new source of equity funding provides us with valuable optionality and access to capital to continue to expand our business on a global scale,” said VinFast CFO, David Mansfield in a statement.
“While we are under no obligation to draw on the full amount, the transaction aligns with our goals of opportunistic capital raising while adding liquidity to our shares over time.”
Up to this point, VinFast has sold approximately 22,000 vehicles and is striving to achieve this year’s sales goal of 40,000 to 50,000 units.
A significant portion of its sales, over half, was directed to a fleet operator situated in Vietnam, overseen by Vuong.
The Founder and President of Yorkville said the fund is looking forward to seeing VinFast’s continued success.
Shares of VFS are down 5.48% in early trading Friday morning.
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