VinFast (NASDAQ:VFS) stock is on the move Friday after the electric vehicle (EV) company announced a massive up to $1 billion share deal with Yorkville.
According to a press release, this deal gives VinFast the option to require Yorkville to acquire up to $1 billion in shares of VFS stock. The company doesn’t have to exercise these rights and has 36 months to exercise them.
David Mansfield, Chief Financial Officer at VinFast, said the following about the agreement:
“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. 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.”
With this extra source of funding, VinFast is able to move forward with its expansion plans. The company notes that it will also continue to evaluate additional funding options as it continues with its growth plan.
VFS Stock Movement on Friday
Despite news of the additional funding, shares of VFS stock aren’t seeing much movement today. As of this writing, about 1 million shares have been traded, as compared to a daily average of around 5.8 million shares.
VFS stock is down 1.4% as of Friday morning and down 84.9% since the start of the year.
Investors looking for even more of the most recent stock market stories on Friday are in the right place!
We’re offering all of the latest stock market news that traders need to know about today! A few examples include what’s happening with AMC Entertainment (NYSE:AMC) stock, solar stocks and XRP (XRP-USD) today. You can catch up on all of these topics at the following links!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
