Think Increases Equity

The until recently bankrupt Norwegian electric vehicle manufacturer Think announced yesterday a $40 million equity increase, meant to support product development and the expansion into North American markets. The money also means Think will become cash-flow positive in 2011.

"The new equity round will help THINK take full advantage of the rapid growth of zero emissions vehicles around the world,” Think CEO Richard Canny said in a statement. “The electric vehicle’s time has arrived, and we are ready to take a leading role among the world’s first global EV makers.”

The money raised by Think come from RockPort Capital Partners, an investment fund co-located in Boston and Menlo Park, California, as well as from Ener1. Each contributed $12.5 million, with the rest of the money coming from the rest of Think's shareholders.

“This last round of equity marks a powerful vote of confidence by THINK’s investors at a time when world capital markets are under great stress,” Canny said. “Completing our funding requirements will allow us to maintain momentum, accelerate key new initiatives and ensure that we capitalize on our first-to-market advantage.”

This March, Think opened a new product development site at its corporate headquarters in Fornebu, Olso. Seventy technicians and engineers will soon start working at the center for the further development of the Think City EV.

The current Think City is a purpose-built electric vehicle designed for urban environments, offering decent highway speeds and a range of 160 km per charge. Its plug-in system can be connected to standard 220V household outlets.