CINCINNATI - Workhorse Group Inc. (NASDAQ: NASDAQ:WKHS), a company specializing in zero-emission commercial vehicles, has announced an agreement with an institutional investor to provide up to $139 million in financing. The deal, which began on March 15, 2024, involves senior secured convertible notes and warrants to purchase common stock.
The initial transaction included a $9 million note and related warrants, known as the March Securities, which were sold in a registered direct offering. This immediate liquidity is being utilized to fund operations and redeem existing senior secured convertible notes valued at $2.5 million.
The offering was made under a registration statement on Form S-3, effective as of July 28, 2023, and is available on the SEC's website. Additional terms of the financing can be found in the Form 8-K filed by the company with the SEC.
Workhorse, an American original equipment manufacturer, designs and builds high-performance, battery-electric trucks and drones. The company also develops real-time telematics performance monitoring systems that are integrated with its vehicles, aiming to improve energy and route efficiency for fleet operators.
The financing is expected to support Workhorse's ongoing product development, including its W4 CC, W750, W56, and WNext programs, and to enhance its production process capabilities.
This press release contains forward-looking statements about the company's expectations, which are subject to risks and uncertainties. Workhorse's future results may differ due to various factors, including its ability to develop and manufacture new products, attract and retain customers, manage supply chain disruptions, and maintain sufficient liquidity.
The company's ability to regain compliance with Nasdaq listing requirements and the potential impact of any actions to achieve this compliance, such as a reverse stock split, are also forward-looking considerations.
The information provided in this article is based on a press release statement from Workhorse Group Inc.
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