Shares of Britain’s Aston Martin (AMGDF) are up 13% on news that the automaker will raise more than £125 million ($161.7 million U.S.) through additional funding from Canadian billionaire and company Chairman Lawrence Stroll’s investment firm.
Aston Martin is also raising additional funds through the sale of a minority stake in its Formula One racing team.
Yew Tree Consortium, an investment vehicle led by Stroll, is paying £52.5 million to increase its stake in the luxury British carmaker.
Stroll’s stake in Aston Martin will increase to 33% from 27.7% because of the deal.
Aston Martin, known for featuring its cars in James Bond films, also said that it intends to sell its minority investment in the Aston Martin Aramco Formula One Team to raise £74 million.
Shares of Aston Martin gained 13% in London trading. The British-listed stock is down nearly 40% this year.
The automaker announced plans in February of this year to cut 170 jobs, roughly 5% of its global workforce, after posting a financial loss in the fourth quarter of last year.
In a news release, Stroll underlined what he called his “unwavering support and commitment” to Aston Martin, following investments of around £600 million in the company since 2020.
Originally from Montreal and a Canadian citizen, Stroll made his money in the fashion world, investing in and working with brands such as Ralph Lauren, Tommy Hilfiger, and Michael Kors.
Forbes estimates Stroll’s net worth at $3.90 billion U.S.
The stock of Aston Martin has declined 88% over the past five years to currently trade at £69.35 per share.
