Swedish startup Uniti about to file for insolvency

Swedish startup Uniti about to file for insolvency

Swedish electric car startup Uniti has returned with news after a lengthy communications hiatus, saying the pandemic has taken a toll on the company, and that a bridge financing deal promised for the end of November has been delayed - currently threatening the company's very existence.

According to Uniti CEO Lewis Horne on LinkedIn, the company has been struggling with the effects of the pandemic and has had to cut its team to an absolute minimum. He said there were negotiations with a strategic investor from China to provide bridge funding by November 30, but as this was delayed, Uniti now has less than a week to raise €500,000, or else it will have to file for bankruptcy.

Horne said the company was hit by the pandemic early on after making important progress on its prototypes. An engineering partner had ordered body parts from a company in Wuhan, and an alternative procurement was not possible due to budget constraints, so the first production-state prototypes could not be built by Q2 2020.

"We courted many prospects; some went well and some failed miserably," Horne writes of the effort. "Ultimately, this process led us to finalize a production candidate that we presented to our shareholders in early 2021." The founder says that not presenting this prototype to the public was due to a desire for a "strategically valuable partner" that could "not only bring us the capital we need, but also solve our production challenges."