Webus International Limited has signed an agreement with Ripple Strategy Holdings for a credit line of up to $100 million. The funds will be used to increase the company's XRP reserves.
Terms of the Credit Agreement
According to the press release, Webus will be able to utilize funds from the credit line in tranches ranging from $250,000 to $3 million, depending on market conditions and capital needs. The agreement will be valid for 24 months and is designed to be shareholder-friendly with market-based competitive pricing.
Webus Growth Strategy
Webus provides AI-powered mobility solutions and offers luxury chauffeur services globally. CEO Nan Zheng stated that the credit line will minimize shareholder dilution while enabling the company to accelerate its growth in North America and Asia Pacific.
Market Reaction to the Agreement
Following the announcement, Webus shares rose by 87% but have since pared back some of those gains. It is expected that the funds will be directed towards XRP-supported payments, blockchain-based loyalty programs, and other global expansion initiatives.
The signing of the credit agreement with Ripple marks a significant step for Webus, potentially strengthening the company's market position and supporting its expansion plans.
