Volcon, Inc.
Announces Improved Debt Position and Strategic Cost
Reduction
AUSTIN, Texas, Sept. 18, 2023 --
InvestorsHub NewsWire -- Volcon Inc. (NASDAQ: VLCN), ("Volcon" or the "Company"), the first
all-electric, off-road powersports company, announced on September
14, 2023 that it has agreed with its convertible noteholders to
modify the terms of its convertible notes and implemented cost
reduction strategies to provide the Company greater flexibility as
it pushes toward the introduction of the first of its UTV models,
the Stag, which the Company expects to begin delivering in October
2023.
The Company entered into a note amendment
with its convertible noteholders pursuant to which the lenders
agreed to, among other changes, extend the maturity of the
outstanding convertible notes from February 24, 2024 to January 31,
2025 and modify certain covenants to allow the Company to execute
its business strategy as it works toward the launch of the Stag.
The amendment is subject to completion of a security agreement
establishing a security interest in the assets of the Company for
the benefit of the noteholders. "We appreciate the support of our
noteholders in making these amendments in order to give us the
flexibility to raise capital to support the launch of the Stag and
the growth of our business," said Jordan Davis, CEO. Davis
continued, "With our Stag launch closing in, our ability to obtain
funding to support manufacturing and to market the Stag to the
public to generate consumer demand are key factors to our
success."
The Company recently implemented further
cost reduction initiatives and is continuing to evaluate its cost
structure to identify incremental savings. Davis notes, "We
continue to build upon our previously announced cost reduction
measures, such as closing manufacturing operations in favor of
outsourced production and reducing headcount in various areas of
the Company to support our vehicle development
strategy."
In addition, the Company has reduced cash
expenses by agreeing to eliminate cash bonuses payable to the
Company's officers in favor of stock awards and the Chief Executive
Officer, Chief Financial Officer and Chief Operating Officer have
voluntarily agreed to reduce their salaries by 10%. The Company's
board of directors has also agreed that all future quarterly board
cash fees will be payable in the form of stock awards as well.
Davis notes, "The Management Team and the Board know how important
the Stag is to our Company, and we recognize we need to personally
support the cash reduction initiatives to ensure our
success."
On September 13, 2023, the Company announced
additional trim packages and pricing for the Stag. The initial
response by existing reservation holders who made deposits and
viewed new trim level selections has been positive. The Company
continues to follow up with all pre-order reservation holders to
make sure they are aware of the trim package options and answer any
questions they may have.
The Company also realized new customer
preorders which further supports the Stag product line and the
future of EV in powersports. The Company has two consumer lending
firms providing financing to consumers, Synchrony Bank and Octane
Roadrunner Financial, which can be found on Volcon.com or by
contacting Volcon dealers for more information.
In addition, the Company's sales team is
connecting with dealers and distributors to place pre-orders. The
overwhelming majority of dealers are committed to selling Volcon
products and are excited that the Stag is finally coming to market.
The Company is also working with a finance company to obtain a
facility that will allow the Company to place Stags with dealers
for small cash outlays allowing the Company to generate cash to
reinvest in additional dealer placements. This facility will allow
dealers to finance their Stag purchases.
About
Volcon
Based in the Austin, Texas area, Volcon was
founded as the first all-electric powersports company producing
high-quality and sustainable electric vehicles for the outdoor
community. Volcon electric vehicles are the future of off-roading,
not only because of their environmental benefits, but also because
of their near silent operation, which allows for a more immersive
outdoor experience.
Volcon's 2023 vehicle roadmap includes both
motorcycles and UTVs hitting the market in North America. Its first
product, the innovative Grunt, has been shipping to customers since
late 2021 and combines a fat-tired physique with high-torque
electric power and a near-silent drive train. Volcon just announced
the launch of the Grunt EVO, an evolution of the original Grunt
with a belt drive, an improved suspension and seat. Volcon also
just announced the launch of the Runt LT, which is a fun-sized
version of the groundbreaking Grunt, is better suited for small
statured riders, more compact properties and trails, or as a pit
bike at race events, while still delivering robust off-road
capabilities. The Brat is Volcon's first foray into the wildly
popular eBike market for both on road and off-road riding and is
currently being delivered to dealers across North America. Volcon
is also launched and is currently delivering the Volcon Youth Line
of dirt bikes for younger riders between the ages of 4 to 11.
Volcon recently launched the Stag and entered the rapidly expanding
UTV market. The Stag empowers the driver to explore the outdoors in
a new and unique way that gas-powered UTVs cannot. The Stag offers
the same thrilling performance of a standard UTV without the noise
(or pollution), allowing the driver to explore the outdoors with
all their senses.
Volcon
Contacts
For Media: media@volcon.com
For Dealers: dealers@volcon.com
For Investors:
investors@volcon.com
For Marketing:
marketing@volcon.com
For more information on Volcon or to learn
more about its complete motorcycle and side-by-side line-up,
visit: www.volcon.com
Forward-Looking
Statements
Some of the statements in this release are
forward-looking statements, which involve risks and uncertainties.
Forward-looking statements in this press release include, without
limitation, statements about the ability to agree upon a mutually
acceptable security agreement with the note holders, the
anticipated completion and timing of the delivery of the Stag
vehicle and certain anticipated cost reductions. Although the
Company believes that the expectations reflected in such
forward-looking statements are reasonable as of the date made,
expectations may prove to have been materially different from the
results expressed or implied by such forward-looking statements.
The Company has attempted to identify forward-looking statements by
terminology including "believes," "estimates," "anticipates,"
"expects," "plans," "projects," "intends," "potential," "may,"
"could," "might," "will," "should," "approximately" or other words
that convey uncertainty of future events or outcomes to identify
these forward-looking statements. These statements are only
predictions and involve known and unknown risks, uncertainties, and
other factors. Any forward-looking statements contained in this
release speak only as of its date. The Company undertakes no
obligation to update any forward-looking statements contained in
this release to reflect events or circumstances occurring after its
date or to reflect the occurrence of unanticipated events. More
detailed information about the risks and uncertainties affecting
the Company is contained under the heading "Risk Factors" in the
Company's Annual Report on Form 10-K and subsequently filed
Quarterly Reports on Form 10-Q filed with the SEC, which are
available on the SEC's website, www.sec.gov.
SOURCE: Volcon ePowersports, Inc.
Volcon (NASDAQ:VLCN)
Historical Stock Chart
From Oct 2024 to Nov 2024
Volcon (NASDAQ:VLCN)
Historical Stock Chart
From Nov 2023 to Nov 2024
