WEJO - Wejo to raise $15.9M in PIPE Investment updates 2022 adj. EBITDA guidance

• Wejo ( NASDAQ: WEJO ) completed a self-arranged $15.9M private investment in public equity investment in Wejo, led by its major commercial partner, Sompo, as well as current investors and certain members of Wejo's Board.
• Under the agreement, the company has agreed to issue and sell in a private placement ~11.3M of company units, each consisting of one share and one third of one warrant per unit purchased.
• The additional liquidity raised through this initiative, combined with Wejo’s significant expense reduction initiatives and with further draw downs on the company’s existing debt and equity facilities earlier announced, is intended to extend Wejo’s capital runway through late 2023 under current capital market conditions.
• Through the company's cost saving initiatives implemented in 2022 cash burn will be reduced to $5-$6M by Q4 of 2022 from $10M per month at the start of 2022.
• The company is updating its 2022 financial outlook with adj. EBITDA loss in the range of $85 to $95M, a significant improvement versus previous expectations in the range of $110 to $120M.
• "In addition to successfully raising additional capital through the PIPE offering, we have implemented a hiring freeze, eliminated non-revenue projects, and prioritized workflows to more squarely focus on revenue generation in the current year and into 2023. We will continue to pursue additional cost reduction initiatives, which will help us get to profitability sooner," CFO John Maxwell commented.
• Shares trading 1.6% down premarket.

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