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Saab Offers More Shares, Pulls Out Of Frankfurt Auto Show

 

2011 Saab 9-4X

2011 Saab 9-4X

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Saab's struggles have been well documented, and now the automaker has made two announcements that show just how hard it is working to stay afloat.

The automaker has now announced that it is offering four million new shares in a 150 million euro ($214 million) equity facility. The shares, which will be sold under an existing agreement with GEM Global Yield Fund Limited, will give Saab somewhere around $5.8 million in cash. This isn't the first time Saab offered shares to GEM.

That cash appears to be sorely needed, since Saab has decided to skip the 2011 Frankfurt Auto Show due to a lack of resources. The automaker says that it's better if it focuses what resources it does have on restarting production, even if the absence from Frankfurt does deprive Saab a chance to show its wares to the press and public.

This doesn't sound like good news for Saab, but on the other hand, it might be smart not to waste precious cash on auto shows when that money may be needed elsewhere, and the extra cash infusion from the sale of new shares might be a nice booster shot.

Stay tuned.

 



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