Volvo Cars has signed a Declaration of Intent stating its intention to subscribe for potential future equity or equity-linked securities issued by Polestar, in proportion to its ownership stake to support the growth and development of Polestar.

Volvo Cars is the largest shareholder in Polestar, currently holding 49.5% of the shares. Volvo Cars’ investment in Polestar is long‐term and strategically important. Volvo Cars strives to act as a responsible shareholder and business partner to Polestar.

Polestar is following an extensive growth plan and continues to deliver on its ambitious global sales, market, and retail expansion plans. Polestar has declared that it anticipates it will need to raise additional funds through debt and equity financings to support its continued growth based on its current business plan.

Polestar has stated that its proposed business combination with Gores Guggenheim, Inc. (Nasdaq: GGPI, GGPIW, and GGPIU), is expected to close in the first half of 2022. Volvo Cars Declaration of Intent to subscribe to potential future equity or equity-linked securities issue by Polestar applies to the period after a proposed listing at Nasdaq New York and until March 31, 2024.

The future investment is not guaranteed and will be subject to final agreements detailing the terms and conditions of such potential equity contribution on market terms and will be subject to all necessary corporate and/or regulatory approvals being obtained.

PSD Investment Ltd, Polestar’s second-largest owner and an entity controlled by Eric Li, Volvo Cars Chairperson, and principal beneficial owner, has entered into a similar declaration of intent.