Munich-based solar technology firm Sono Motors has recently entered into investment agreements with New Yorkville, a hedge fund based in New York. The move is expected to facilitate the restructuring of Sono Motors, effectively concluding the self-administration proceedings initiated in May 2023, and allowing the company to resume its solar integration business.
While the exact investment amount remains undisclosed, Sono Motors has expressed confidence that this transaction, contingent on specific conditions, will furnish the necessary financing for its operational activities through at least the conclusion of 2024. The finalization of contracts with Yorkville and the anticipated termination of insolvency proceedings are slated for the end of January 2024.
In the wake of the investor agreement's signing, Sono Motors extended re-employment offers to all employees who were laid off in late October. The majority of the workforce has reportedly accepted these offers, as stated in the company's press release.
The forthcoming reactivation of operations will be accompanied by a revamped management team at Sono Motors GmbH. Notably, co-founders Jona Christians and Laurin Hahn are expected to step aside from the new management structure. According to a filing with the US Securities and Exchange Commission, Christians and Hahn are poised to relinquish a portion of their ordinary shares to a trustee for the benefit of creditors and the management, upon request. Additionally, both founders are slated to transfer all voting shares to the yet-to-be-determined future management team.
The successful execution of this agreement, subject to certain conditions precedent, positions Sono Motors to secure adequate financial support for its endeavors until at least the conclusion of 2024.