Workhorse Strengthens Financial Position with Convertible Note Transaction
March 19 2024 - 9:00AM
Workhorse Group Inc. (Nasdaq: WKHS) (“Workhorse” or “the Company”),
an American technology company focused on pioneering the transition
to zero emission commercial vehicles, today announced it entered
into an agreement on March 15, 2024 with an institutional investor
(the “Investor”) on the terms of financing transactions that will
deliver up to $139 million to Workhorse and support the Company’s
continued execution of its product roadmap.
The financing transactions contemplate the issuance
and sale by Workhorse to the Investor of senior secured convertible
notes in an aggregate principal amount of up to $139 million and
warrants to purchase shares of common stock in multiple tranches
over a period beginning on March 15, 2024. In connection with the
agreement, the Company completed a registered direct offering
pursuant to which it issued and sold to the Investor a $9 million
note and related warrants (the “March Securities”). The sale of the
March Securities provides Workhorse immediate liquidity which is
being used to fund operations and redeem the remaining $2,500,000
in aggregate principal amount of its existing Green Senior Secured
Convertible Note.
The March Securities were offered in the registered
direct offering pursuant to a registration statement on Form S-3
(File No. 333-273357), which was declared effective by the
Securities and Exchange Commission (the “SEC”) on July 28, 2023.
The March Securities were offered in the registered direct offering
only by means of a prospectus which is a part of the effective
registration statement. A final prospectus supplement and the
accompanying prospectus relating to the registered direct offering
were filed with the SEC and will be available on the SEC’s website
at www.sec.gov.
This press release shall not constitute an offer to
sell or a solicitation of an offer to buy any securities, nor shall
there be any sale of any securities in any state or other
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to the registration or qualification under the
securities laws of any such state or other jurisdiction.
Additional information, including the full terms of
the financing transactions, is available in the Form 8-K that the
Company filed with the Securities and Exchange Commission.
About Workhorse Group Inc.
Workhorse is a technology company focused on
providing ground and air-based electric vehicles to the last-mile
delivery sector. As an American original equipment manufacturer, we
design and build high performance, battery-electric trucks and
drones. 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
The discussions in this press release contain
forward-looking statements reflecting our current expectations that
involve risks and uncertainties. These statements are made under
the “safe harbor” provisions of the U.S. Private Securities
Litigation Reform Act of 1995. When used in this Report, the words
“anticipate,” “expect,” “plan,” “believe,” “seek,” “estimate” and
similar expressions are intended to identify forward-looking
statements. These are statements that relate to future periods and
include, but are not limited to, statements about the features,
benefits and performance of our products, our ability to introduce
new product offerings and increase revenue from existing products,
expected expenses including those related to selling and marketing,
product development and general and administrative, our beliefs
regarding the health and growth of the market for our products,
anticipated increase in our customer base, expansion of our
products functionalities, expected revenue levels and sources of
revenue, expected impact, if any, of legal proceedings, the
adequacy of our liquidity and capital resources, the likelihood of
us obtaining additional financing in the immediate future and the
expected terms of such financing, and expected growth in business.
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 in this
Report. Factors that could cause actual results to differ
materially include, but are not limited to: our ability to develop
and manufacture our new product portfolio, including the W4 CC,
W750, W56 and WNext programs; our ability to attract and retain
customers for our existing and new products; risks associated with
obtaining orders and executing upon such orders; the
unavailability, reduction, elimination or adverse application of
government subsidies, incentives and regulations; supply chain
disruptions, including constraints on steel, semiconductors and
other material inputs and resulting cost increases impacting our
Company, our customers, our suppliers or the industry; our ability
to capitalize on opportunities to deliver products to meet customer
requirements; our limited operations and need to expand and enhance
elements of our production process to fulfill product orders; our
general inability to raise additional capital to fund our
operations and business plan; our ability to obtain financing to
meet our immediate liquidity needs and the potential costs,
dilution and restrictions imposed by any such financing; our
ability to regain compliance with the listing requirements of the
Nasdaq Capital Market and otherwise maintain the listing of our
securities thereon and the impact of any steps we take to regain
such compliance, such as a reverse split of our common stock, on
our operations, stock price and future access to liquidity; our
ability to protect our intellectual property; market acceptance for
our products; our ability to obtain sufficient liquidity from
operations and financing activities to continue as a going concern
and, our ability to control our expenses; the effectiveness of our
cost control measures and impact such measures could have on our
operations; potential competition, including without limitation
shifts in technology; volatility in and deterioration of national
and international capital markets and economic conditions; global
and local business conditions; acts of war (including without
limitation the conflicts in Ukraine and Israel) and/or terrorism;
the prices being charged by our competitors; our inability to
retain key members of our management team; our inability to satisfy
our customer warranty claims; the outcome of any regulatory or
legal proceedings; and other risks and uncertainties and other
factors discussed from time to time in our filings with the
Securities and Exchange Commission (“SEC”), including under the
“Risk Factors” section of our annual report on Form 10-K filed with
the SEC. Forward-looking statements speak only as of the date
hereof. We expressly disclaim any obligation or undertaking to
release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in our
expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based,
except as required by law.
Media Contact:Aaron Palash / Greg
KlassenJoele Frank, Wilkinson Brimmer Katcher212-355-4449
Investor Relations Contact:Matt
Glover / Tom ColtonGateway Investor
Relations949-574-3860WKHS@gateway-grp.com
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