Ebusco receives six million euros from an existing shareholder
The financially struggling electric bus manufacturer Ebusco is receiving six million euros from its existing shareholder Rhein Holding. By the end of June, the company had only 2.1 million euros in cash on hand. Meanwhile, Ebusco is working on securing financing of around 30 million euros.
Even when presenting its interim financial results last Friday, Ebusco stated that it was in talks with one of its shareholders regarding a short-term liquidity solution. It is now clear that this shareholder is Rhein Holding B.V. The existing shareholder has committed to investing a total of six million euros in Ebusco’s equity, in two tranches of three million euros each. The first tranche is expected to be disbursed in the coming days, with the second before the end of August.
Ebusco is issuing 31,725,049 new ordinary shares at a price of 0.189125 euros each for the investment, which is about a 15 percent discount from the closing price of 0.2225 euros on August 14. Rhein Holding currently holds around 5.1 percent of Ebusco’s shares, and this stake is expected to rise to approximately 16.6 percent after the capital increase. This will also grant Rhein Holding the right to nominate a member for Ebusco’s board of directors, though the appointment still needs to be approved by shareholders at a general meeting. There is a holding period of 90 days for these shares.
The six million euros come at a crucial time for Ebusco. Although the Dutch electric bus manufacturer was able to significantly reduce its losses in the first half of the year and achieve a positive gross margin for the first time since 2022, its financial situation remains strained. Cash reserves dropped from 7.4 million euros to just 2.1 million euros, the net loss amounted to 24.9 million euros, and equity was at minus 14.8 million euros. Operational impacts are also evident, with Ebusco delivering only 16 buses in the first half of the year compared to 47 in the same period last year. Some of the pending deliveries have already been postponed to the first quarter of 2027.
Cash flow situation remains tight
The capital increase now agreed upon is therefore only part of a larger financing solution. Meanwhile, Ebusco continues to work on a letter-of-credit facility worth around 30 million euros with an Asian partner, backed by a guarantee from the Chinese battery manufacturer and Ebusco shareholder Gotion. The final documentation has not yet been prepared, however.
Regardless of short-term financing measures, the restructuring process continues: Ebusco has largely completed its transformation from a traditional vehicle manufacturer to what is known as an Original Equipment Designer (OED). Assembly is increasingly handled by contract manufacturers in Asia, while the company focuses on development, final finishing, and customer service. Meanwhile, Ebusco continues to seek a strategic solution for its bus business. Options include selling a controlling stake or forming a joint venture, but no binding agreement has been reached yet.