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.

“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.