Shares of ECD Automotive Design Inc (NASDAQ:ECDA) jumped about 20% in premarket trading on Thursday after the company said it is engaged in discussions around potential strategic transactions valued between $2 million and $10 million.
In a filing with regulators, the luxury vehicle restorer disclosed that it began negotiations with a lender on January 6, 2026, to explore transactions that could include a mix of cash funding and preferred equity. The company said these discussions could result in agreements being completed within the next 30 days.
The filing also noted that ECD is evaluating a possible debt-for-preferred-equity exchange with its existing lender, also within the $2 million to $10 million range. Management indicated that such a move would be aimed at strengthening the company’s shareholder equity position.
ECD Automotive Design is known for restoring and modernizing classic Land Rover Defenders, Range Rovers and Jaguar E-Types, incorporating updated powertrains and contemporary features. Any new capital raised through the potential transactions could help support ongoing operations and future growth plans.
Investors appeared encouraged by the update, with the sharp rise in the share price suggesting optimism that the talks could improve the company’s financial flexibility. ECD did not provide further details on the structure of the transactions or the intended use of proceeds.