By Michael Dabaie

 

Farfetch Ltd. (FTCH) shares were up 10% to $12.45 in early trading after the company said it is raising $250 million from Tencent Holdings Ltd. (0700.HK) and Dragoneer.

The technology platform for luxury fashion said it agreed to issue and sell, via a private placement, convertible senior notes in an aggregate principal amount of $250 million. Tencent agreed to purchase $125 million of the notes, and San Francisco-based investment firm Dragoneer agreed to purchase the remaining $125 million.

Farfetch said that as of December 31, its cash and cash equivalents balance was about $320 million.

The additional capital will facilitate focus on growth plans, including in the China market, and working toward operational profitability.

Tencent's investment expands the relationship between the two companies, which are working on luxury brands reaching Chinese consumers through Tencent's WeChat platform.

 

Write to Michael Dabaie at michael.dabaie@wsj.com

 

(END) Dow Jones Newswires

January 30, 2020 09:53 ET (14:53 GMT)

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