Aston Martin cut share-offer price after loss

Aston Martin Lagonda Global Holdings PLC said Thursday that it will offer shares at 207 pence each under the previously announced rights issue, as it reported a widened net loss for 2019.

The troubled luxury car maker—famed for its links to cinema spy James Bond–said last month that it was seeking to raise up to 500 million pounds ($647.4 million), part of which will be supported by billionaire Lawrence Stroll.

A consortium led by Mr. Stroll–father of Formula 1 racer Lance Stroll–is investing GBP182 million in the company, taking a 16.7% stake.

Aston Martin is raising an extra GBP318 million from shareholders via the rights issue. Accepting shareholders can buy up to 153.2 million shares at the discounted price on the basis of 14 new shares for every 25 owned.

The issue price is a 49% discount to its closing price of 402.70 pence on Jan. 30, the day before it announced the fundraising plan.

The company added that as previously agreed Penny Hughes will step down as chair of the board and be replaced by Mr. Stroll. In addition, Mark Wilson will step down as chief financial offer by April 30.

For 2019, Aston Martin booked a net loss of GBP113.2 million compared with a loss of GBP62.7 million in 2018.

Adjusted earnings before interest, taxes, depreciation and amortization–the company’s preferred metric which strips out exceptional and other one-off items–were GBP134.2 million compared with GBP247.3 million.

The company said that its supply chain is being actively managed in China and other markets and so far there hasn’t been any impact on production. It added that supply is secured until at least the end of March.

Write to Ian Walker at [email protected]; @IanWalk40289749

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