SINGAPORE, Oct. 20,
2023 /PRNewswire/ -- VinFast Auto Ltd. (the
"Company" or "VinFast") (NASDAQ: VFS) today announced that it has
entered into a standby equity subscription agreement ("Subscription
Agreement") with YA II PN, Ltd. ("Yorkville").
Subscription Agreement Highlights:
- VinFast has the option, but not the obligation, to require
Yorkville to subscribe for up to $1.0
billion of ordinary shares in VinFast at any time during the
term of the Subscription Agreement, subject to certain conditions
and limitations
- The Subscription Agreement has a term of 36 months
Mr. David Mansfield, CFO of
VinFast, said: "This new source of equity funding provides
us with valuable optionality and access to capital to continue to
expand our business on a global scale. While we are under no
obligation to draw on the full amount, the transaction aligns with
our goals of opportunistic capital raising while adding liquidity
to our shares over time. In addition to existing funding
commitments, it provides financial flexibility to fund our growth.
We will continue to evaluate other capital markets transactions and
sources of fundraising as VinFast continues to grow."
Mark Angelo, Founder and
President of Yorkville, commented: "VinFast is a true leader
in EVs. We are excited for this opportunity to be a
part of VinFast's growth and development, and we look forward to
seeing VinFast's continued success in the EV market. We
couldn't be prouder of our partnership with VinFast in its mission
for a greener future."
In April 2023, our Chairman, Mr.
Pham Nhat Vuong, Vingroup Joint
Stock Company ("Vingroup") and VinFast entered into a capital
funding agreement, under which VinFast would receive grants of up
to VND24,000 billion (~$1 billion) from Mr. Vuong, as well as up to
VND12,000 billion (~$500 million) in non-refundable grants and up to
VND24,000 billion (~$1 billion) in loans from Vingroup, in order to
support VinFast's growth and global expansion plans.
For more information, please visit:
https://www.sec.gov/Archives/edgar/data/1913510/000119312523259553/d559114d6k.htm
The information contained in this press release does not
constitute an offer to sell or the solicitation of an offer to buy
ordinary shares in VinFast, nor shall there be any offer,
solicitation, or sale of the shares in any jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction.
About VinFast
VinFast – a subsidiary of Vingroup JSC – is Vietnam's leading automotive manufacturer
committed to its mission of creating a green future for everyone.
VinFast manufactures a portfolio of electric SUVs, e-scooters and
e-buses in Vietnam and exports to
the United States, and soon,
Europe. Learn more
at www.vinfastauto.us.
About Yorkville
Yorkville Advisors is a global registered investment manager to
a number of private investment funds. Yorkville invests funds'
capital through customized structured debt and equity investments.
Yorkville's investment criteria focuses on management teams,
business fundamentals, and stock trading metrics. Yorkville
funds have broad investment mandates across many sectors and
geographies. Yorkville funds are often the sole investor in a
capital raise, allowing for a controlled and disciplined exit
strategy. Yorkville's team has been providing growth and
acquisition capital to public companies since 2001.
Forward-Looking Statements
Forward-looking statements in this announcement, which are
not historical facts, are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1955.
These statements include statements regarding our future results of
operations and financial position, planned products and services,
business strategy and plans, objectives of management for future
operations of VinFast, market size and growth opportunities,
competitive position and technological and market trends and
involve known and unknown risks that are difficult to predict. As a
result, our actual results, performance or achievements may differ
materially from those expressed or implied by these forward-looking
statements. In some cases, you can identify forward-looking
statements because they contain words such as "may," "will,"
"shall," "should," "expects," "plans," "anticipates," "could,"
"intends," "target," "projects," "contemplates," "believes,"
"estimates," "predicts," "potential," "goal," "objective," "seeks,"
or "continue" or the negative of these words or other similar terms
or expressions that concern our expectations, strategy, plans, or
intentions. Such forward-looking statements are necessarily based
upon estimates and assumptions that, while considered reasonable by
us and our management, are inherently uncertain. Factors that may
cause actual results to differ materially from current expectations
include, but are not limited to: (i) the effect of the consummation
of the business combination and the public listing of the Company's
securities on its business relationships, performance, financial
condition and business generally, (ii) the risk that the Company's
securities may experience a material price decline and volatility
in the price of such securities due to a variety of factors, (iii)
the adverse impact of any legal proceedings and regulatory
inquiries and investigations on the Company's business, (iv) the
Company's potential inability to maintain the listing of its
securities on Nasdaq, (v) the risk associated with the Company's
limited operating history, (vi) the ability of the Company to
achieve profitability, positive cash flows from operating
activities and a net working capital surplus, (vii) the ability of
the Company to fund its capital requirements through additional
debt and equity financing under commercially reasonable terms and
the risk of shareholding dilution as a result of additional capital
raising, if applicable, (viii) risks associated with being a new
entrant in the EV industry, (ix) the risks of the Company's brand,
reputation, public credibility and consumer confidence in its
business being harmed by negative publicity, (x) the Company's
ability to successfully introduce and market new products and
services, (xi) competition in the automotive industry, (xii) the
Company's ability to adequately control the costs associated with
its operations, (xiii) the ability of the Company to obtain
components and raw materials according to schedule at acceptable
prices, quality and volumes acceptable from its suppliers, (xiv)
the Company's ability to maintain relationships with existing
suppliers who are critical and necessary to the output and
production of its vehicles and to create relationships with new
suppliers, (xv) the Company's ability to establish manufacturing
facilities outside of Vietnam and
expand capacity in a timely manner and within budget, (xvi) the
risk that the Company's actual vehicle sales and revenue could
differ materially from expected levels based on the number of
reservations received, (xvii) the demand for, and consumers'
willingness to adopt, EVs, (xiii) the availability and
accessibility of EV charging stations or related infrastructure,
(xix) the unavailability, reduction or elimination of government
and economic incentives or government policies which are favorable
for EV manufacturers and buyers, (xx) failure to maintain an
effective system of internal control over financial reporting and
to accurately and timely report the Company's financial condition,
results of operations or cash flows, (xxi) battery pack failures in
the Company or its competitor's EVs, (xxii) failure of the
Company's business partners to deliver their services, (xxiii)
errors, bugs, vulnerabilities, design defects or other issues
related to technology used or involved in the Company's EVs or
operations, (xxiv) the risk that the Company's research and
development efforts may not yield expected results, (xxv) risks
associated with autonomous driving technologies, (xxvi) product
recalls that the Company may be required to make, (xxvii) the
ability of the Company's controlling shareholder to control and
exert significant influence on the Company, (xxiii) the Company's
reliance on financial and other support from Vingroup and its
affiliates and the close association between the Company and
Vingroup and its affiliates, (xxix) conflicts of interests with or
any events impacting the reputation of Vingroup affiliates or
unfavorable market conditions or adverse business operations of
Vingroup and Vingroup affiliates and (xxx) other risks discussed in
our reports filed or furnished to the Securities and Exchange
Commission.
All forward-looking statements attributable to us or persons
acting on our behalf are expressly qualified in their entirety by
the cautionary statements set forth above. You are cautioned not to
place undue reliance on any forward-looking statements, which are
made only as of the date of this announcement. VinFast does not
undertake or assume any obligation to update publicly any of these
forward-looking statements to reflect actual results, new
information or future events, changes in assumptions or changes in
other factors affecting forward-looking statements, except to the
extent required by applicable law. If VinFast updates one or more
forward-looking statements, no inference should be drawn that it
will make additional updates with respect to those or other
forward-looking statements. The inclusion of any statement in this
announcement does not constitute an admission by VinFast or any
other person that the events or circumstances described in such
statement are material. Undue reliance should not be placed upon
the forward-looking statements.
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SOURCE VinFast