Company sells two-year note with warrants for 25,000,003 common shares
By Devika Patel
Knoxville, Tenn., Dec. 7 – Workhorse Group Inc. sold another $4,784,425 convertible promissory notes in a $13.54 million private placement on Dec. 4, according to an 8-K filed Monday with the Securities and Exchange Commission. The deal raised $8,750,001 on Nov. 9.
The 6% note is due in two years and converts to common shares at $0.35 per share, which is a 20.46% discount to the Nov. 6 closing share price of $0.44.
The investors also received warrants for 38,526,931 shares, with warrants for 25,000,003 shares issued in the first tranche and warrants for 13,526,928 shares issued in the second. Each five-year warrant is exercisable at $0.528, which is a 20% premium to the Nov. 6 closing price.
The Loveland, Ohio, company makes and sells medium-duty trucks with powertrain components under the Workhorse chassis brand.
| Issuer: | Workhorse Group Inc.
|
| Issue: | Convertible promissory notes
|
| Amount: | $13,534,426
|
| Maturity: | Two years
|
| Coupon: | 6%
|
| Conversion price: | $0.35
|
| Warrants: | For 38,526,931 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.528
|
| Settlement dates: | Nov. 9 (for $8,750,001), Dec. 4 (for $4,784,425)
|
| Stock symbol: | OTCBB: WKHS
|
| Stock price: | $0.44 at close Nov. 6
|
| Market capitalization: | $115.74 million
|
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