ECD Automotive Design Raises $1M, Converts $10M Debt to Regain Nasdaq Compliance

ECD Automotive Design has exchanged $10M in convertible promissory notes for 15,000 shares of Series C Convertible Preferred Stock, and raised ~$1M through a private placement of 1,111 Series C Preferred shares. These moves aim to improve the company's financial standing and regain Nasdaq listing compliance.

ECD Automotive Design, Inc. (NASDAQ: ECDA), a leading restoration company specializing in classic luxury vehicles, has undertaken significant financial maneuvers to bolster its capital structure and regain compliance with Nasdaq listing standards. The company recently exchanged $10 million of outstanding convertible promissory notes for 15,000 newly issued shares of Series C Convertible Preferred Stock [1]. Additionally, ECD Automotive Design completed a private placement sale of 1,111 shares of Series C Convertible Preferred Stock for $999,900 [2].

These transactions are part of ECD’s strategy to reduce its debt burden and lower cash interest expenses, while also providing additional working capital to support operations and retail location expansion. Scott Wallace, CEO of ECD Auto Design, expressed gratitude for the continued confidence of the investors [1].

ECD Automotive Design specializes in restoring vehicles such as Land Rover Defenders, Range Rover Classics, Jaguar E-Types, Ford Mustangs, and Toyota FJs. The company operates from a 100,000-square-foot facility in Kissimmee, Florida, employing 67 craftsmen and technicians with a combined 66 Automotive Service Excellence certifications. It also maintains a logistics center in the United Kingdom for sourcing and transporting 25-year-old vehicles to the U.S. for restoration [1].

In addition to these recent transactions, ECD Automotive Design has secured a $500 million equity facility with ECDA Bitcoin Treasury LLC to implement a Bitcoin treasury strategy and support growth initiatives [1]. The company also received a notice from the Nasdaq Stock Market regarding the potential delisting of its common stock and warrants due to non-compliance with specific listing rules, which it plans to appeal [1].

The company has also implemented operational efficiency measures, including a comprehensive review of its cost structure, inventory management practices, and negotiations with lenders. These moves aim to enhance its financial position and position it for future growth.

References:
[1] https://www.investing.com/news/company-news/ecd-automotive-design-exchanges-10-million-in-notes-for-preferred-stock-93CH-4192228
[2] https://seekingalpha.com/news/4485411-ecd-automotive-design-exchanges-10m-debt-raises-1m