Sono Motors secures investment to emerge from insolvency

Munich-based Sono Motors on Monday said it has signed investment agreements with YA II PN Ltd, a hedge fund managed by Yorkville, which will enable the company to restructure itself and emerge from its self-administration proceedings.

According to the announcement, the deal will provide Sono Motors with financing for its business operations until at least the end of 2024.

The company is looking to continue its solar integration business, with the first priority now being the market launch of the Solar Bus Kit retrofit solution that Sono Motors has developed for diesel and electric buses.

The closing of the investment and finalisation of the insolvency proceeding, which has been ongoing since May 2023, are expected in late January 2024.

"We believe the agreement with Yorkville gives us the opportunity for a promising new start," said Jan Schiermeister, who now serves as Sono Motors’ head of technology. The company's restart will come with a management restructuring. Thanks to the investment all employees who were given notice at the end of October were offered re-employment.

In February, Sono Motors announced a decision to discontinue its Sion solar electric vehicle project and focus on retrofitting and integrating solar technology into vehicles of third parties and fleet operators.

It now said that despite the self-administration proceedings, the number of customers and partners for Sono Motors’ solar technology has increased from 25 to 28 since March 2023.

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