Shares of Chinese car e-commerce company Uxin (NASDAQ: UXIN) popped almost 9% as of 3:06 p.m. EDT Tuesday after the company announced some fresh financing a major shakeup with its board of directors. The financing will bring in $100 million now and more later, which is welcome news. And the new directors perhaps bring some added credibility to the company.
Uxin is issuing convertible notes that could bring in a total of $315 million for the company. For perspective, at the end of 2020, the company only had $44 million in cash and equivalents on the balance sheet despite registering a $25 million quarterly loss from operations -- a somewhat bleak situation even considering its business fundamentals were relatively improved . In short, Uxin needed some cash and it got it. Today's announcement wasn't for the entire $315 million, but rather for the first tranche of convertible notes worth $100 million.
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Why Uxin Stock Popped Today