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AUSTIN - Volcon, Inc. (NASDAQ:VLCN) announced Thursday it has entered into agreements with institutional and accredited investors for a private placement of approximately 50.1 million shares of common stock at $10.00 per share, expecting to raise about $500 million before expenses. The electric vehicle manufacturer, currently valued at $5.02 million market cap, has seen its stock surge over 17% in the past week. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics, despite facing significant operational challenges with negative EBITDA of -$24.97 million in the last twelve months.
The company plans to use at least 95% of the proceeds to acquire Bitcoin as its "primary treasury reserve asset," according to a press release statement. The private placement is expected to close around July 21, 2025. This strategic shift comes as the company maintains a strong liquidity position with a current ratio of 5.09, though InvestingPro data indicates the company has been quickly burning through cash despite achieving 19.71% revenue growth in the last twelve months.
Empery Asset Management served as lead investor, with participation from crypto venture capital firms including FalconX, Pantera, Borderless, RK Capital, and Relayer Capital, alongside traditional financial investors.
As part of this strategic shift, Ryan Lane, co-founder and Managing Member of Empery Asset Management, has been appointed co-CEO and Chairman of Volcon’s Board of Directors effective immediately. The company has also added Ian Read, Rohan Chauhan, and Matthew Homer to its board.
To execute its Bitcoin treasury strategy, Volcon has entered into a Strategic Digital Assets Services Agreement with Gemini Nustar LLC, an affiliate of Gemini Trust Company.
John Kim will continue as co-CEO, focusing on Volcon’s electric off-road power sports business, which the company says it is transforming with "an asset light, low working capital model."
Clear Street LLC acted as lead placement agent for the private placement, with Aegis Capital Corp. serving as co-placement agent and exclusive financial advisor.
The securities offered in the private placement have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States except pursuant to an exemption from registration requirements. Trading at a price-to-book ratio of 0.3, the stock has shown high volatility, with InvestingPro offering 16 additional investment tips and comprehensive financial analysis for subscribers looking to better understand the company’s potential.
In other recent news, Volcon Inc. announced a strategic shift involving a $500 million private placement aimed at investing in Bitcoin as a primary treasury reserve asset. This move includes the sale of approximately 50.1 million shares of common stock at $10.00 per share, with Empery Asset Management leading the investment round. Additionally, Volcon reported its financial results for the first quarter of 2025, with revenue of $736,049, reflecting a decrease from previous quarters, and a net loss of $2,460,430, marking an improvement from the last two quarters of 2024. The company has also secured a significant purchase order for 1,000 golf carts from Advanced EV, marking a strategic market test for a new model developed in collaboration with Super Sonic. Volcon’s recent corporate actions include a 1-for-8 reverse stock split, reducing outstanding shares from approximately 4.3 million to about 0.54 million. In response to increased tariffs on goods from China and Vietnam, where its vehicles are manufactured, Volcon is evaluating options to mitigate the impact, such as assembling vehicles in the U.S. or adjusting consumer prices. The company has also resumed its share repurchase program, indicating confidence in its financial health. These developments reflect Volcon’s ongoing efforts to navigate market challenges and pursue growth opportunities.
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