Shares of Nxu experienced a significant boost following the company's partnership with an investment in Lynx Motors. The stock saw a 33% increase, trading at $4.15 in the middle of the day. However, it's important to note that shares for the company have been down 99% this year.
Based in Mesa, Arizona, Nxu is an electric-vehicle charging and energy storage company. It announced on Wednesday that it had finalized an investment in Lynx as previously stated. To execute this strategic investment, Nxu exchanged $3 million worth of its own shares for an equivalent value of Lynx shares. Additionally, Nxu secured a seat on Lynx's board as part of the agreement.
In order to facilitate the investment, Lynx issued an interest-free promissory note of $250,000 to Nxu. This note serves as a counterpart to the $250,000 bridge loan provided by Nxu.
With this partnership in place, Nxu aims to meet Nasdaq's listing requirements by the deadline of April 7, 2024, ensuring the company's continued growth and success.
The initial agreement outlining the details of the investment was signed on December 13. Beyond this investment, Nxu also plans to support Lynx in expanding its development of electrified products.