Volcon reports $9.47 million in proceeds from stock sales

Volcon , Inc. (NASDAQ:VLCN), a manufacturer in the motor vehicles sector, disclosed today that it has raised approximately $9.47 million in gross proceeds through the sale of 1,831,558 shares of its common stock. According to InvestingPro data, this capital raise comes as the company faces rapid cash burn, with negative free cash flow of $25.45 million in the last twelve months. This move is part of an ongoing At-The-Market (ATM) offering agreement with Aegis Capital Corp., which was established on October 18, 2024.

Under the terms of the ATM Agreement, Volcon has the option to sell shares of its common stock from time to time, with the potential to raise up to $100 million in aggregate sales. As of Monday, the company had taken advantage of this agreement to bolster its financial position.

Following the recent sales, Volcon’s total shares of common stock outstanding amount to 2,475,607 as of today. The company, incorporated in Delaware with headquarters in Round Rock, Texas, is identified as an emerging growth company and is subject to the Securities Exchange Act of 1934.

This financial maneuver comes as part of Volcon’s broader strategy to access capital and finance its operations and growth initiatives. The company’s choice to utilize an ATM offering provides a flexible method to raise capital over time, potentially minimizing the dilutive impact on existing shareholders compared to traditional equity offerings.

Investors and market watchers are keeping a close eye on Volcon’s financial activities, as this recent capital raise may signal the company’s ongoing efforts to invest in its business and drive future growth. The information is based on a press release statement filed with the Securities and Exchange Commission.

In other recent news, Volcon Inc. has been making significant strides in the electric vehicle industry. The company has entered into an exclusive distribution agreement with Super Sonic Company Limited to distribute its golf carts in the United States.

This move is expected to capitalize on market conditions influenced by high tariffs on Chinese imports, offering Volcon a competitive edge with Super Sonic’s manufacturing facility in Vietnam. The agreement also includes a provision for Volcon to issue shares of common stock to Super Sonic based on the number of product units ordered each quarter.

Furthermore, Volcon has announced the arrival of its latest model, the Volcon HF1, at Lithium Powersports in Jacksonville, Florida. The company has also terminated supplier agreements with GLV Ventures and initiated a monthly termination fee, while appointing Orn Olason as an independent member of its Board of Directors.

In addition to these developments, Volcon has released a promotional video for its latest utility terrain vehicle, the VLCN HF1, as part of its marketing efforts. These are among the recent developments for Volcon, as it continues to establish its presence in the electric vehicle sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.