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(Reuters) - Polestar (NASDAQ:PSNY) has secured additional loan funding of up to $450 million, it said on Friday, and would delay its fourth-quarter results to April as the Swedish electric vehicle maker burns through cash in its bid to bolster the business, amid falling demand.
U.S.-listed shares of the company fell 2.7% in premarket trading.
Backed by China's Geely, the company has struggled to drum up demand for its vehicles amid a softer buying environment and strong competition.
The company was previously expected to report its already delayed fourth-quarter results in March.
The latest delay follows previous issues with Polestar's financial disclosures, having to republish statements from past financial years due to errors and delaying its reports several quarters in a row, leaving investors to question the firm's accounting measures.
A steady stream of money is seen as crucial for the survival of EV firms, where cash burn is required to ramp up production and boost operations. Lack of funding has led to a number of startups going bankrupt, including EV truck maker Nikola (OTC:NKLAQ) most recently.
Polestar in January published results of a strategic review launched by its new CEO, with the aim to shake up its business and try to come closer to its goal of profitability.
In connection with the review's results, the company had secured more than $800 million in 12-month loans in December, a part of which would be used to repay loans. It added that an additional loan facility of more than $400 million was being worked on.
Polestar's spokesperson confirmed to Reuters that the loan of $450 million secured on Friday was the same as mentioned in January. The new funds will be used for "general corporate use," the spokesperson said.
The company also renewed a loan facility worth 480 million euros ($499.54 million) with a syndicate of global banks.
($1 = 0.9609 euros)