Gold bars to be exempt from tariffs, White House clarifies
Zoomcar Holdings, Inc. (NASDAQ:ZCAR), a car rental service without drivers, announced adjustments to the terms of its Series B Warrants and authorized the management to settle certain outstanding claims. This decision was made by the company’s Board of Directors on Monday. According to InvestingPro data, the company faces significant financial challenges, with a concerning current ratio of 0.13 and total debt to capital ratio of 89%, suggesting potential liquidity constraints.
The Board determined to set the "Reset Price" of the Series B Warrants issued in a previous private placement offering to the "Floor Price" of $0.312, which will adjust to $6.24 upon the effectiveness of a reverse stock split scheduled for today. The stock has experienced significant pressure, falling 99.7% over the past year, with the current price of $0.22 trading near its 52-week low of $0.21. InvestingPro analysis reveals 15+ additional key insights about ZCAR’s financial health and market position. The "Reset Date" for these warrants has been declared effective, allowing immediate exercise up to the "Maximum Eligibility Amount" based on the new "Reset Price," considering the beneficial ownership limitations.
Zoomcar initially entered into securities purchase agreements on December 23, 2024, and January 31, 2025, for a private placement offering targeting a minimum of $4 million and up to a maximum of $30 million. The first closing of the offering occurred on December 25, 2024, raising approximately $5.48 million, followed by a second closing on February 4, 2025, with additional gross proceeds of approximately $1.44 million.
The company also announced that it would consider settling certain outstanding or potential claims against it by offering units in the ongoing private placement offering.
These developments follow the company’s recent report on a reverse stock split, detailed in a Form 8-K filed with the SEC on March 19, 2025. Forward-looking statements included in the press release are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially.
Zoomcar, headquartered in Bangalore, India, and incorporated in Delaware, operates under the trading symbols ZCAR for its common stock and ZCARW for its warrants on The Nasdaq Stock Market LLC.
This information is based on a press release statement filed with the Securities and Exchange Commission.
In other recent news, Zoomcar Holdings Inc. reported its financial results for the fourth quarter of 2024, highlighting a significant improvement in contribution margin from 9% to 52% and a reduction in adjusted EBITDA loss from $10.17 million to $3.15 million. Revenue for the quarter saw a slight increase of 1%, totaling $2.45 million, while contribution profit rose from $210,000 to $1.28 million. Additionally, Zoomcar announced a 1-for-20 reverse stock split, which was approved by stockholders and will take effect after market close on March 21, 2025. This move aims to elevate the per-share trading price and ensure compliance with Nasdaq’s minimum bid price requirement.
The company has been focusing on repeat user growth and operational cost optimization, which are reflected in its improved financial metrics. Zoomcar also raised $18 million between November 2024 and January 2025 to support its operations and debt restructuring efforts. CEO Hiroshi Nishijima emphasized the company’s strategic positioning in India, while CFO Sachin Gupta discussed ongoing fundraising and debt restructuring initiatives. Zoomcar received an extension from Nasdaq to regain compliance by February 19, 2025, and is committed to addressing the remaining deficiencies. These developments indicate Zoomcar’s efforts to enhance its financial stability and market presence.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.