CINCINNATI, June 30, 2020 /PRNewswire/ -- Workhorse Group
Inc. (Nasdaq: WKHS) ("Workhorse"), an American
technology company focused on providing sustainable and
cost-effective drone-integrated electric vehicles to the last-mile
delivery sector, has entered into a financing agreement for a
$70 million Senior Secured
Convertible Note (the "Note") with a single institutional investor.
The proceeds will be used for current operating working capital and
other general corporate purposes.
The Note will rank pari passu with Workhorse's Senior Secured
Convertible Note issued in December
2019 and senior to all other debt and is convertible into
common stock by the investor at $19.00 per share, or 131% of the closing price of
Workhorse's common stock on June 29,
2020. The Note matures on July 1,
2023 and contains a 4.5% annualized coupon to be paid
quarterly in either cash or stock beginning October 1, 2020. In addition, Workhorse may be
required to redeem up to $3.5 million
of principal in monthly installments in either cash or stock
beginning October 1, 2020.
"With this note in place, we have much greater financial
flexibility to support our current and future production needs,"
said Workhorse CEO Duane Hughes.
"Heading into the second half of the year, we'll be looking to meet
our previously stated annual delivery target, which should have us
in a strong position to accelerate our production ramp into 2021.
Successful vehicle production and delivery should also lead to
additional orders as we demonstrate our ability to meet our current
demand and provide road-ready last-mile delivery EVs."
Workhorse CFO Steve Schrader
added: "This financing will also allow us to continue to pursue a
credit revolver, which we believe is the best financing vehicle for
ramping up production. We expect these proceeds to provide
corporate operating funds for the foreseeable future."
For additional details regarding the agreement, please reference
the Form 8-K filed with the U.S. Securities and Exchange Commission
on June 30, 2020.
About Workhorse Group Inc.
Workhorse is a technology company focused on providing
drone-integrated electric vehicles to the last-mile delivery
sector. As an American original equipment manufacturer, we design
and build high performance, battery-electric vehicles including
trucks and aircraft. Workhorse also develops cloud-based, real-time
telematics performance monitoring systems that are fully integrated
with our vehicles and enable fleet operators to optimize energy and
route efficiency. All Workhorse vehicles are designed to make the
movement of people and goods more efficient and less harmful to the
environment. For additional information
visit workhorse.com.
Forward-Looking Statements
This press release includes forward-looking statements.
These statements are made under the "safe harbor" provisions of the
U.S. Private Securities Litigation Reform Act of 1995. These
statements may be identified by words such as "believes,"
"expects," "anticipates," "estimates," "projects," "intends,"
"should," "seeks," "future," "continue," or the negative of such
terms, or other comparable terminology. Forward-looking statements
are statements that are not historical facts. Such
forward-looking statements are subject to risks and uncertainties,
which could cause actual results to differ materially from the
forward-looking statements contained herein. Factors that
could cause actual results to differ materially include, but are
not limited to: our limited operations and need to expand in the
near future to fulfill product orders; risks associated with
obtaining orders and executing upon such orders; the ability to
protect our intellectual property; the potential lack of market
acceptance of our products; potential competition; our inability to
retain key members of our management team; our inability to raise
additional capital to fund our operations and business plan; our
inability to satisfy covenants in our financing agreements; our
inability to maintain our listing of our securities on the Nasdaq
Capital Market; our inability to satisfy our customer warranty
claims; our ability to continue as a going concern; our liquidity
and other risks and uncertainties and other factors discussed from
time to time in our filings with the Securities and Exchange
Commission ("SEC"), including our annual report on Form 10-K filed
with the SEC. Workhorse expressly disclaims any obligation to
publicly update any forward-looking statements contained herein,
whether as a result of new information, future events or otherwise,
except as required by law.
Media Contact:
Mike Dektas
Creative Storm PR
513-266-3590
mike@creativestorm.com
Workhorse Investor Relations Contact:
Matt Glover and Tom Colton
Gateway Investor Relations
949-574-3860
WKHS@gatewayir.com
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SOURCE Workhorse Group Inc.