ECARX secures up to $150 million in convertible notes financing

LONDON - Mobility technology provider ECARX Holdings Inc. (NASDAQ:ECX) has entered into a securities purchase agreement with New York-based ATW Partners for convertible notes of up to $150 million, the company announced Friday. The transaction comes as ECARX’s stock has shown strong momentum, with an impressive 80.77% price return over the past six months according to InvestingPro data.

The transaction aims to enhance ECARX’s liquidity position and provide financial flexibility for executing strategic priorities, according to a press release statement. Proceeds will support the company’s global expansion, including product innovation, scaling partnerships with international automakers, and investments in software-defined vehicle technologies. This financing comes at a critical time, as InvestingPro data shows ECARX’s current ratio stands at just 0.53, indicating short-term obligations exceed liquid assets.

"This transaction reflects the confidence institutional investors have in ECARX’s technology leadership and global growth strategy," said Ziyu Shen, Chief Executive Officer and Chairman of ECARX.

D. Boral Capital LLC served as the exclusive placement agent for the offering.

ECARX, founded in 2017 and listed on Nasdaq in 2022, develops turnkey solutions for smart vehicles, including system on a chip technology and central computing platforms. The company employs over 1,600 people across 13 locations in China, UK, USA, Singapore, Malaysia, Sweden and Germany.

The company’s products are currently found in over 9.3 million vehicles worldwide, with customers including Volkswagen Group, FAW Group and Dongfeng Peugeot-Citroën.

Additional details about the financing transaction are available in the Form 6-K filed with the SEC.

In other recent news, ECARX Holdings Inc. announced the launch of its AI Enhanced Antora 1000 computing platform and Cloudpeak software stack in the Geely Galaxy EX5 vehicle in the UK. This marks a significant expansion into core European markets after successful rollouts in regions like Southeast Europe and South America. Additionally, ECARX has formed a strategic partnership with Victory Giant Technology to develop high-performance computing platforms for the automotive industry. Victory Giant will supply custom-engineered printed circuit boards to support ECARX’s AI-capable platforms, which have already secured multiple contracts globally. In another development, ECARX’s Pikes computing platform and Cloudpeak software stack will power the AI cockpit technology for Lynk & Co’s new hybrid vehicles. The first of these, the Lynk & Co 10 EM-P plug-in hybrid sedan, has already been launched, featuring advanced systems supported by Qualcomm’s Snapdragon SA8295P chip. Moreover, ECARX’s Antora 1000 Pro computing platform has achieved the highest Automotive SPICE v4.0 Capability Level 3 certification, adding to its portfolio of accreditations. These developments underscore ECARX’s ongoing efforts to enhance its technological offerings and expand its market presence.

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