CINCINNATI, July 20, 2020 /PRNewswire/ — Workhorse GroupInc. (Nasdaq: WKHS) (“Workhorse”), an American technology company focused on providing sustainable and cost-effective drone-integrated electric vehicles to the last-mile delivery sector, today announced the closing of its previously announced 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. 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.
“This financing gives us almost $110 million of cash to support our accelerated production efforts and working capital needs,” said Workhorse CEO Duane Hughes. “With the first two C-Series trucks officially sent to Ryder Systems earlier this week, production and delivery are now underway. While the majority of our annual targeted deliveries will be in the fourth quarter, the certifications from the EPA and the California Air Resources Board expand our early technology leadership position as the only fully permitted, last-mile EV OEM with outstanding sales orders currently building vehicles for commercial use across the country.”
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.
Image and quotes courtesy PRNewswire/Work horse group