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Nio To Raise $1.42B In Funding As Part Of Plan To Move Chinese Headquarters To Hefei

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Shanthi Rexaline
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Nio Inc – ADR (NYSE: NIO) shares are higher Tuesday morning after declining sharply in the previous two sessions.

Nio Lands Another Financing Deal

Nio signed an agreement a cooperation framework agreement with the Hefei City for raising 10 billion yuan, or $1.42 billion.

The cash-strapped company recently signed multiple funding agreements that are expected to place at its disposal 0 million.

Earlier this month, a Bloomberg report suggested Nio had to delay paychecks, stung by the coronavirus impact. The company's cash position is precarious, and according to its last reported numbers, cash position as of September 2019 stood at a measly $274.3 million.

Nio Chinese Headquarters Moving to Hefei

Nio has also agreed to shift its China headquarters to the Hefei City, the capital city of the Anhui Province in Eastern China.

Apart from the headquarters, the company will build its base for R&D, sales and production, while also developing a national operational system with Hefei as the focus.

On shifting to Hebei, Nio hopes to become a leading enterprise with a production value of 100 billion yuan in five years.

Nio has an ongoing cooperation agreement with Hefei-based automaker JAC Motors, which was signed in 2016. The EV maker also kicked off mass production of its EC6 model at the JAC NIO Advanced Manufacturing Center in Hefei.

Nio shares are skyrocketing 29.12% to $5.01 in Tuesday's pre-market session.

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