Uniti: Swedish electric car start-up on the verge of bankruptcy

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Company has to raise 300,000 euros in a few days, otherwise it is bankrupt

Uniti: Swedish electric car start-up on the verge of bankruptcy-uniti

Uniti, the Swedish start-up behind the Uniti One small electric car, is on the verge of bankruptcy. The company boss Lewis Horne has now announced by email, where he linked to a longer article on LinkedIn.

The only straw to the rescue: Uniti is hoping for capital commitments from investors.

The Uniti One was introduced in 2017 and should be launched in 2019. The date was postponed to 2020, but the car is still not on the market at the end of 2021, although it can still be configured – at prices from 17,767 euros net, i.e. around 21,000 euros with German VAT. For this you get a three-seater only 3.22 meters long with a range of 150 km; for a surcharge it becomes 300 km.

The first prototype ready for series production should be ready in the second quarter of 2020, but the body parts should come from Wuhan of all places, and so the matter was delayed because of the corona pandemic. Body parts from the UK would have been too expensive.

Picture gallery: Uniti One (pictures from 2019)

Uniti: Swedish electric car start-up on the verge of bankruptcy-uniti

Without a prototype, however, it was apparently not possible to raise capital. Due to a lack of funds, the team was downsized, the office was given up and press work was discontinued. Apparently it also became clear that you could not raise the capital necessary to set up a series production yourself.

Instead, Uniti found a Chinese partner who could solve the production problem and bring in capital. Among other things, the investor wanted to invest four million euros in the first demo vehicles of the One and 60 million in a Uniti production plant in China. In addition, the investor aimed for an IPO within 12 months. A letter of intent has apparently been signed, but no final contract has yet been signed. And the partner asked for discretion.

"So now we have less than a week to raise € 500k, otherwise, we need to file for bankruptcy." (Uniti boss Horne)

The Chinese were due to send bridging funding in late November, but restrictions on capital exports from China prevented the transaction, Horne said. Now you have "less than a week to collect 500,000 euros, otherwise we have to file for bankruptcy." The team has not received a salary for months.

The shareholders thereupon promised around 200,000 euros, so there are still 300,000 euros missing. Now Horne is asking for capital commitments from investors – apparently a last cry for help. With half a million, the company could hold out until June 2022, during which time it could close the deal with the Chinese or find another investor, so the hope is.

A month ago, the Munich startup ACM also filed for bankruptcy, as reported by the automobile week. ACM had already found a production partner in Magna, but the presentation of City One was severely delayed due to the pandemic. Then the money ran out and bankruptcy followed – apparently the problems of such startups are similar.

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