Polestar Automotive Holding UK PLC - Equity Investment and Shareholder Loan Conversion

Polestar Automotive Holding UK PLC has announced a significant financial transaction involving a USD 300 million PIPE (Private Investment in Public Equity) with Banco Bilbao Vizcaya Argentaria, S.A. and NATIXIS. Each institution will purchase Class A American Depositary Shares (ADSs) at USD 19.34 per ADS. Concurrently, Geely Sweden Automotive Investment AB (GSAI) has agreed to convert approximately USD 300 million of its outstanding debt owed to Polestar into equity. This conversion is expected to be completed after regulatory approvals. The transactions are designed to enhance Polestar's liquidity and strengthen its balance sheet. The PIPE investors will have put option arrangements with GSAI, providing an exit strategy. The company anticipates these transactions will close by December 23, 2025. Polestar is also proceeding with its planned vehicle launches and manufacturing expansions, despite acknowledging various risks and uncertainties inherent in the automotive industry and global economic conditions.