Company sells 12% note due July 13, 2017 to investor Cardinal Capital
By Devika Patel
Knoxville, Tenn., July 17 – Workhorse Group Inc. sold a $250,000 convertible note to Cardinal Capital Group, Inc. for $225,000 in a private placement on July 13, according to an 8-K filed Friday with the Securities and Exchange Commission.
The note is due July 13, 2017 and carries a one-time interest charge of 12%. The note converts to common shares at a price equal to the lesser of $0.20 or 60% of the lowest trade of the stock during the 25 trading days preceding conversion. The debenture may be redeemed at prices ranging from 120 to 140.
Proceeds will be used for general working capital purposes.
The Loveland, Ohio, company makes and sells medium-duty trucks with powertrain components under the Workhorse chassis brand.
| Issuer: | Workhorse Group Inc.
|
| Issue: | Convertible note
|
| Amount: | $250,000
|
| Maturity: | July 13, 2017
|
| Price: | $225,000
|
| Coupon: | 12%
|
| Conversion price: | The lesser of $0.20 or 60% of the lowest trade of the stock during the 25 trading days preceding conversion
|
| Call: | At 120 to 140
|
| Warrants: | No
|
| Investor: | Cardinal Capital Group, Inc.
|
| Settlement date: | July 13
|
| Stock symbol: | OTCBB: WKHS
|
| Stock price: | $0.19 at close July 10
|
| Market capitalization: | $35.19 million
|
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