CPE News (3.21.2023) – Bird Global, Inc. (NYSE: BRDS) has secured additional US $3 million funding, bringing the total new capital to almost US $33 million this year. (all dollar figures are in US dollar)
Bird Global expects to raise up to $10 million of additional funding as part of this round, as a result of additional investor interest.
Effective as of January 3, 2023, Bird Global acquired Bird Canada Inc. from John Bitove, MKB Partners Fund II, Relay Ventures Fund III, Alate I and other shareholders, in exchange for the issuance by Bird Global of an aggregate principal amount of $26,977,675 of its 12.0% Convertible Senior Secured Notes due 2027, 18,204,365 shares of the company’s Class A Common Stock, and a nominal amount of cash consideration.
On the closing date, Bird Global issued and sold an aggregate principal amount of $30 million of the Convertible Senior Secured Notes, by way of a private placement to certain accredited investors.
Bird used a portion of the proceeds from the Notes issued to repay the $4 million subordinated loan made by Bird Canada under a loan agreement.
Miami, Florida based Bird is an electric vehicle company dedicated to bringing affordable, environmentally friendly transportation solutions such as e-scooters and e-bikes to communities across the world.
photo credit: Bird
Bird Receives Additional New Funding, Bringing Total to $33M This Year
Additional financing expected in the coming weeks
Bolsters Bird’s outlook for positive free cash flow and adjusted EBITDA for full year 2023
March 21, 2023 08:00 AM Eastern Daylight Time
MIAMI–(BUSINESS WIRE)–Bird Global, Inc. (NYSE:BRDS, “Bird”), a leader in environmentally friendly electric transportation, today announced that it has secured additional funding, bringing the total new capital to almost $33 million this year. The investment demonstrates continued confidence in Bird’s path ahead, following Bird’s second consecutive quarter of positive adjusted EBITDA. The funding strengthens Bird’s liquidity position, and further enables the company to achieve its expectations of $15 to $20 million in adjusted EBITDA and $5 to $10 million in free cash flow this year. The new funding comes from a variety of new investors into Bird Global.
The company expects to raise up to $10 million of additional funding as part of this round, as a result of additional investor interest.
“With spring just beginning, we are entering the season of positive free cash flow. This funding further strengthens our cash position in support of expanding into new markets and investing in new technologies,” said Shane Torchiana, CEO, Bird. “Coupled with the adjustments we’ve made to operating cost and our footprint for the year, we are well on our way to building a self-sustaining business. The continued investor interest in Bird strengthens our confidence in the profitable year ahead for Bird.”
The new funding is financed by way of convertible notes. For further information regarding terms and conditions of the transaction, please see Bird’s Current Report on Form 8-K, filed on January 3, 2023.
Bird is an electric vehicle company dedicated to bringing affordable, environmentally friendly transportation solutions such as e-scooters and e-bikes to communities across the world. Founded in 2017 by transportation pioneer Travis VanderZanden, Bird’s cleaner, affordable, and on-demand mobility solutions are available in more than 350 cities, primarily across the United States, Canada, Europe, the Middle East, and Australia. We take a collaborative, community-first approach to micromobility. Bird partners closely with the cities in which it operates to provide a reliable and affordable transportation option for people who live and work there.
This press release contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts may be forward-looking statements. Such forward-looking statements include, but are not limited to, statements regarding the expected benefits of the transaction; our intention to close on additional funding this quarter; our path to profitability and our future financial performance, operations, operating results and financial condition. We have based these forward-looking statements largely on our current expectations. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, our ability to cure our New York Stock Exchange (“NYSE”) price deficiency and meet the continued listing requirements of the NYSE; risks related to our relatively short operating history and our new and evolving business model, which makes it difficult to evaluate our future prospects, forecast financial results, and assess the risks and challenges we may face; our ability to achieve or maintain profitability in the future; our ability to retain existing riders or add new riders; our Fleet Managers’ ability to maintain vehicle quality or service levels; our ability to evaluate our business and prospects in the new and rapidly changing industry in which we operate; risks related to the impact of poor weather and seasonality on our business; our ability to obtain vehicles that meet our quality specifications in sufficient quantities on commercially reasonable terms; our ability to compete successfully in the highly competitive industries in which we operate; risks related to our substantial indebtedness; our ability to secure additional financing; risks related to the effective operation of mobile operating systems, networks and standards that we do not control; risks related to action by governmental authorities to restrict access to our products and services in their localities; risks related to claims, lawsuits, arbitration proceedings, government investigations and other proceedings to which we are regularly subject; risks related to compliance, market and other risks, including the ongoing conflict between Ukraine and Russia, in relation to any expansion by us into international markets; any continuing impact of the COVID-19 pandemic on our business, financial condition, and results of operations; risks related to the impact of impairment of our long-lived assets and the other important factors discussed in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022 , and described from time to time in our future reports filed with the Securities and Exchange Commission. The forward-looking statements in this press release are based upon information available to us as of the date of this press release and while we believe such information forms a reasonable basis for such statements, these statements are inherently uncertain and you are cautioned not to unduly rely upon these statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this press release, whether as a result of any new information, future events or otherwise.