Electric mobility solutions technology company, Workhorse has entered into subscription agreements for a private offering with a group of institutional investors, resulting in gross proceeds of US$25m.
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.
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“This funding provides Workhorse with sufficient capital to fully deliver on our existing backlog and will enable us to make significant strides in our vision of being a leader in the electric last mile delivery space,” said Workhorse 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 23 April, 2019, Workhorse also terminated its pre-existing At-the-Market (ATM) Offering Sales Agreement with Cowen and Company, which had been in place since June, 2017.
