Fisker investors are cheering a big news today: find out more

Shares of Fisker Inc (NYSE: FSR) rallied close to 40% on Monday after the EV startup revealed an agreement with an institutional investor.

Why does it matter for Fisker stock?

The said agreement is a big news for investors as it’s expected to free up cash. Henrik Fisker – the chief executive of Fisker Inc said in a press release today:

Fisker is expected to report its financial results for the fourth quarter in the final week of February. Consensus is for it to lose 20 cents a share versus 54 cents per share a year ago.

Fisker shares have returned to over $1.0 following the rally on Monday.

Fisker to gain access to unrestricted cash

Fisker did not, however, reveal the name of the institutional investor with whom it signed an amendment and waiver agreement on Monday.

The deal makes “unrestricted cash available” for the automotive company as it waives “all financial covenants related to its cash reserves”.  

Fisker Inc also confirmed that the agreement waives “any remaining remedies from its previous late filing of 10-Q”.

Shares of the California-based company have struggled in recent months partially because of the ongoing slowdown in EV sales. Short interest in $FSR currently stands at just below 50%.