CINCINNATI, June 10, 2019 /PRNewswire/ -- Workhorse
Group Inc. (NASDAQ: WKHS) ("Workhorse" or
"the Company"), an American technology company focused on
providing sustainable and cost-effective electric-mobility
solutions to the transportation sector, has entered into
subscription agreements for a private offering with a group of
institutional investors, resulting in gross proceeds to the Company
of $25 million.
Under the terms of the agreements, the investors acquired shares
of Series B preferred stock and warrants to purchase common
stock. The Series B preferred stock is not convertible, but
the holders are entitled to annual dividends payable in shares of
common stock. Full details relating to the private offering
can be found in the Company's Form 8-K filed with the Securities
and Exchange Commission on June 6,
2019.
The closing with respect to approximately $15,000,000 occurred on May 31, 2019, and the balance of approximately
$10,000,000 will close today,
June 10, 2019. The proceeds will be
used for general working capital and research and
development, allowing the company to focus on finalizing the
R&D associated with the N-GEN followed by production of the
existing contracted backlog.
"This funding provides Workhorse with sufficient capital to
fully deliver on our existing backlog and will enable us to make
significant strides in our strategic vision of being a leader in
the electric last mile delivery space," said Company CEO
Duane Hughes. "We now have all
necessary pieces in place to bridge Workhorse into full-scale N-GEN
production and are looking forward to commencing the manufacturing
process, in earnest, during the fourth quarter of this year."
Separately, on April 23, 2019,
Workhorse also terminated its preexisting At-the-Market (ATM)
Offering Sales Agreement with Cowen and Company, which had been in
place since June 2017.
About Workhorse Group Inc.
Workhorse is a technology company focused on providing electric
mobility solutions to the transportation 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.
Workhorse Safe Harbor Statement
This 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; our ability to successfully complete research and
development of our vehicles and, in turn, to commence production in
a timely manner; 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 maintain our
listing of our securities on the Nasdaq Capital Market; 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.
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.