As work on the City electric vehicle (EV) continued these past few years, the financial side of Think was going through some big ups and downs (bankruptcy). Today, the company is announcing that the upswing is continuing because Think has completed a $40 million equity increase “to support further product development and planned expansion into North American markets.” What does that mean? Think says it “is now fully funded and expects to become cash flow positive in 2011.”
The equity round was over-subscribed (it was originally going to be $30 million), and was co-led by Rockport Capital and Ener1. Rockport will increase the size of its holding in Think and become the number two investor (Ener1 is first). Think CEO Richard Canny told AutoblogGreen that this is all really good news for his company:
For us, it’s a little bit like the tailwind is finally behind us. We’ve got the whole push to electrification and at the same time we’ve got the car on the road and the company is now in a really strong financial condition. The round was oversubscribed. We didn’t need to bring in that much money, by bringing in some extra money, it gives us a little bit of flexibility to pick and choose some extra projects or accelerate some things that we wanted to do, so it’s always good when you’re fast and you’re focused to also be well-funded. When you get those three things together, then you can really do some interesting things.
The money will not only be used to get the cars to the U.S., but will also allow Think to prepare the City for the right-hand drive markets like the UK and Japan.
There was also a bit of a corporate shuffle, with Think board member Charles Gassenheimer, who is also the Chairman and CEO of Ener1 and works on the Think/EnerDel partnership for EV power-train supply, moving over to the Chairman of the Board position, effective immediately. The current chairman, Reidar Langmo, was moved down to vice chairman.
Gallery: Think City in Detroit
Think announces $40 million equity increase thanks to Rockport, Ener1 originally appeared on Autoblog Green on Mon, 10 May 2010 18:00:00 EST. Please see our terms for use of feeds.