March 18 (Reuters) - Fisker ( FSRN ) said on Monday it

would pause production of its electric vehicles for six weeks

and raise up to $150 million in funding by selling convertible

notes after missing an interest payment, as the startup tries to

navigate a cash crunch.

The company added that none of its Ocean SUVs were produced

in January, while its manufacturing partner Magna's

Austrian unit made about 1,000 vehicles between Feb. 1 and March

15.

Fisker ( FSRN ) delivered about 1,300 vehicles in 2024 and the value

of inventory of completed vehicles was more than $200 million,

according to the company.

The senior secured convertible notes will have a 10%

original issue discount for gross proceeds of up to $150

million.

The notes are being sold to CVI Investments, which is

working through Heights Capital Management, and the investment

fund can convert the debt into equity in Fisker ( FSRN ), the EV firm

said in documents filed with the U.S. Securities and Exchange

Commission.

Fisker ( FSRN ) said it did not make the $8.4 million interest

payment on March 15 for some convertible notes due 2026 despite

having enough liquidity, as it wanted to take advantage of a

30-day grace period to talk to its investors about its capital

structure.

As of Friday, the company's balance of cash, cash

equivalents and restricted cash was $120.9 million, down from

$395.9 million at the end of last year.

Fisker ( FSRN ) reiterated on Monday that it was in talks with a

large automaker for a potential transaction, but did not name

the company.

Reuters reported earlier this month that Nissan ( NSANF ) was

in advanced talks to invest in the company in a deal that could

act as a financial lifeline for the cash-strapped EV startup.

Earlier this year, Fisker ( FSRN ) started to transition its sales

strategy from a direct-to-customer model to leaning on dealers

to sell cars as it faced issues with distribution and servicing.

The company flagged substantial doubt about its ability to

continue as a going concern in February and paused investments

in future projects until it secured a partnership with an

automaker.