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In a stark reflection of the challenges facing the electric vehicle sector, Workhorse Group Inc. (NASDAQ:WKHS) stock has tumbled to a 52-week low, with shares dropping to a sobering $2.01. The company’s market capitalization has shrunk to just $6.74 million, while InvestingPro analysis indicates the stock is trading in oversold territory. This latest price level underscores a tumultuous period for the company, which has seen its stock value erode dramatically over the past year, with a 96.53% decline. The company’s financial health score of 1.42 is labeled as "WEAK" by InvestingPro, reflecting significant challenges including a concerning debt burden and rapid cash burn rate. Investors have been grappling with a mix of production setbacks, heightened competition, and shifting regulatory landscapes, all of which have contributed to Workhorse’s precipitous decline in market confidence. For deeper insights into WKHS’s valuation and prospects, access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Workhorse Group Inc. has announced several significant developments. The company reported securing $35 million in financing through a senior secured convertible note and a warrant to purchase common stock. This financial maneuver is part of a larger series of agreements that could total up to $139 million, aimed at supporting Workhorse’s operations and strategic initiatives. Additionally, Workhorse has obtained approval to import and sell its all-electric step vans, the W56 and W750 models, in Canada, marking an important expansion into the Canadian market.
In another financial development, Workhorse has received consent to release $3 million from a lockbox account, a move that follows a previous agreement involving the issuance of convertible notes and warrants. Furthermore, the company has secured an additional $3.5 million in financing through a convertible note, continuing its strategy to bolster its financial position. The note carries a 9% annual interest rate and is convertible into common stock, with a cap to prevent the holder from acquiring more than 9.99% of the outstanding shares.
Workhorse also announced a reverse stock split at a ratio of 1-for-12.5 to meet Nasdaq’s minimum bid price requirement. This action aims to boost the stock price to comply with Nasdaq’s listing standards. These developments reflect Workhorse’s ongoing efforts to strengthen its financial standing and expand its market presence, as the company navigates the competitive landscape of the electric vehicle industry.
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