Lotus Technology issues $119 million convertible note to Geely International

Published 24/06/2025, 15:16
Lotus Technology issues $119 million convertible note to Geely International

Lotus Technology Inc. (NASDAQ:LOT), a Shanghai-based manufacturer of motor vehicles, announced it has issued a senior convertible note with a principal amount of $119,262,924.22 to Geely International (Hong Kong) Limited. The transaction was completed through a private placement on Friday.

According to the company’s statement in a filing with the Securities and Exchange Commission, the note will mature on June 18, 2026. It carries an annual interest rate equal to the secured overnight financing rate (SOFR) as of the issue date plus 3.35%, with interest payable at maturity.

The note gives Geely International the option to convert the debt into either ordinary shares or American depositary shares (ADSs) of Lotus Technology. This conversion option becomes available beginning on the 30th trading day after the issue date. The initial conversion price will be based on the volume-weighted average price of Lotus Technology’s ADSs over the 10 consecutive trading days immediately before the conversion date.

The company stated that, unless otherwise agreed with the investor, the note ranks senior to all other current and future unsecured and unsubordinated debt of Lotus Technology and its subsidiaries, subject to applicable laws.

The details of the purchase agreement and the note were included as exhibits to the company’s Form 6-K, filed with the SEC on Tuesday. The filing was signed by Daxue Wang, Chief Financial Officer of Lotus Technology.

This information is based on a press release statement included in the company’s SEC filing.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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