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ECD Automotive Design, Inc. (NASDAQ:ECDA) announced Monday it has entered into an agreement with its securities counsel, Loeb & Loeb LLP, to settle up to $2,090,000 in legal fees. According to a statement based on a recent SEC filing, the company issued a common stock purchase warrant to Loeb & Loeb, allowing the law firm to acquire 550,000 shares of ECD Automotive Design’s common stock at an exercise price of $0.01 per share.
The number of warrants was determined using the closing price of $3.80 per share for ECD Automotive Design’s common stock on the Nasdaq Stock Market on September 23. Under the terms of the agreement, the outstanding legal fees will be reduced dollar for dollar by the net proceeds Loeb & Loeb realizes from selling the warrant shares.
The warrants are exercisable for a period of three years. ECD Automotive Design has also provided Loeb & Loeb with certain registration rights regarding the warrant shares. The agreement includes a provision that prevents Loeb & Loeb and its affiliates from beneficially owning more than 4.99% of the company’s outstanding shares as a result of exercising the warrants.
This information is based on a press release statement filed with the Securities and Exchange Commission.
In other recent news, ECD Automotive Design announced a new VIP Test Drive program, allowing potential clients to experience their custom-restored luxury vehicles at home or the office. This service is available within a 75-mile radius of their locations, covering areas from Vero Beach to Miami and Central Florida. The company also issued a correction regarding its Nasdaq listing update, clarifying that $13.7 million of debt was converted to preferred equity, not the previously reported $15.5 million. ECD Automotive Design has been granted an extension to maintain its Nasdaq listing, with conditions including achieving a closing bid price of at least $1.00 for ten consecutive trading days by October 1, 2025, and reaching stockholder equity of at least $2.5 million by January 7, 2026. To meet these requirements, ECD announced a 1-for-40 reverse stock split effective September 18, 2025, reducing its outstanding shares while maintaining the same number of authorized shares. The reverse split is aimed at boosting the per-share trading price to comply with Nasdaq’s minimum bid price requirement. Despite these developments, ECD Automotive Design’s stock experienced a significant drop in premarket trading following the reverse split announcement.
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