ECDA Financing

ECD Automotive Strengthens Balance Sheet Through $10 Million Debt-for-Equity Exchange and Completes a $999,900 Equity Raise

Published August 14, 2025 at 12:30 PM

KISSIMMEE, Fla., Aug. 14, 2025 (GLOBE NEWSWIRE) -- ECD Automotive Design, Inc. (NASDAQ: ECDA) (“ECD” or the “Company”), the world’s largest Land Rover and Jaguar restoration company known for its custom luxury builds, including bespoke Defenders, Range Rovers, Jaguar E-Types, Ford Mustangs and Toyota FJs, announced that it has exchanged $10 million of outstanding convertible promissory notes for 15,000 newly issued shares of ECD’s Series C Convertible Preferred Stock. In addition, the Company has completed a private placement of the sale of 1,111 shares of the Company’s Series C Convertible Preferred Stock in exchange for $999,900.

Related Questions

How does the market currently price ECDA's convertible preferred versus the common share? What is the conversion price and ratio for the Series C Convertible Preferred Stock? How does the $10 million debt‑for‑equity exchange affect ECD's leverage ratios and overall balance‑sheet strength? Are there any anti‑dilution or redemption provisions attached to the preferred shares that could affect future equity structure? What is the dilution impact on existing common shareholders from the issuance of 15,000 preferred shares and the private placement of 1,111 shares? How does the $999,900 private placement compare to the current market price of ECDA's common stock? What are the terms (interest rate, maturity, conversion price) of the convertible promissory notes being exchanged? Will the proceeds from the private placement be used for working capital, debt repayment, or growth initiatives? How will this financing affect ECD's earnings per share (EPS) and net income in the next quarters? Does the transaction trigger any covenant breaches or require additional covenant compliance? How does this financing round compare to recent capital raises by competing luxury‑auto restoration firms? Will the new preferred shares affect voting control or board composition? What is the expected impact on the stock's price volatility and short‑interest levels? Does this transaction signal a change in the company's strategic direction or growth outlook? What is the timeline for converting the preferred shares into common equity?