On December 29, Phoenix Motor Inc Entered Into Several Agreements With Its Vendors To Settle Performance And Payment Obligations
Portfolio Pulse from Benzinga Newsdesk
Phoenix Motor Inc. has settled obligations with vendors IAT Automobile Design LLC and Ultimate Automotive Engineering Inc. by entering into agreements to issue shares of common stock in lieu of cash payments. The agreements resolve disputes over performance and payments for electric vehicle design and maintenance services. Phoenix will issue shares valued at $1.24 each to IAT and UAE to settle outstanding payments of $952,606 and $738,406, respectively.
January 04, 2024 | 2:30 pm
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Phoenix Motor Inc. has settled payment disputes with IAT and UAE by issuing common stock, which may dilute existing shareholders but also resolves outstanding vendor obligations.
The issuance of additional shares to settle debts may lead to short-term negative sentiment due to the dilution of existing shareholders' equity. However, resolving these disputes can be seen as a positive step towards stabilizing the company's operations and financial situation.
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