Do You Really Understand The Damage Of Fisker's Senior Convertible Notes?
Summary
- Fisker stock has been declining while the broader market rallies. Investors are likely becoming increasingly wary of execution challenges, liquidity risks, and a slowing EV industry.
- Paired with the company's tight liquidity situation and ongoing cash burn rate, additional fundraising is inevitable.
- This is expected to trigger up to a three-fold share dilution under Fisker's recent senior convertible notes' structure and push the stock toward the stipulated price floor of $1.16.
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