Troubled electric bus manufacturer Ebusco has secured a €6 million equity investment from existing shareholder Rhein Holding as the Dutch company works to address its tight liquidity position and secure additional financing. Ebusco is also negotiating a letter of credit facility of around €30 million with an Asian partner backed by a guarantee from Chinese battery maker and shareholder Gotion.
Rhein Holding Raises Ebusco Stake
Rhein Holding will provide the €6 million investment in two equal tranches of €3 million. The first payment is expected in the coming days, while the second is due before the end of August.
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In exchange, Ebusco will issue 31,725,049 new ordinary shares at €0.189125 per share. The issue price represents a discount of about 15% to Ebusco’s closing share price of €0.2225 on August 14.
Rhein Holding currently owns about 5.1% of Ebusco. Following completion of the capital increase, its holding is expected to increase to approximately 16.6%.
The transaction will also give Rhein Holding the right to nominate a member of Ebusco’s supervisory board, subject to shareholder approval at a general meeting. The newly issued shares will be subject to a 90-day lock-up period.
Ebusco Faces Tight Liquidity
The investment comes as Ebusco continues to operate under significant financial pressure.
At the end of June, the company had €2.1 million in liquid funds, down from €7.4 million previously. Ebusco reported a net loss of €24.9 million for the first half of the year, while equity stood at negative €14.8 million.
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Operational output also remained below the previous year’s level. Ebusco delivered 16 electric buses during the first half of the year, compared with 47 buses in the same period a year earlier. Some deliveries have already been postponed until the first quarter of 2027.
Despite the financial difficulties, Ebusco significantly reduced its losses during the first half and recorded a positive gross margin for the first time since 2022.
Company Seeks Additional €30 Million Facility
The €6 million equity injection is part of a broader effort to secure Ebusco’s near-term financing requirements.
The company is continuing negotiations over a letter of credit facility worth around €30 million with an Asian partner. The proposed facility would be guaranteed by Gotion, the Chinese battery manufacturer that is also an Ebusco shareholder.
Final documentation for the facility remains outstanding, meaning the additional financing has not yet been completed.
Ebusco Continues Manufacturing Restructuring
Alongside its financing efforts, Ebusco is continuing a restructuring aimed at changing its operating model from a traditional vehicle manufacturer into an Original Equipment Designer.
Under the new model, more vehicle assembly is being outsourced to contract manufacturers in Asia, while Ebusco focuses on vehicle development, final assembly and customer service.
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The company is also seeking a strategic solution for its bus business. Options under consideration include selling a controlling stake or establishing a joint venture.
No binding agreement has been reached on the strategic restructuring of the bus business.