**Workhorse Group Inc. Issues an Eighth Additional Note of $3.5 Million to an Institutional Investor**

Workhorse Group Inc. (NASDAQ:WKHS) recently announced the issuance of an Eighth Additional Note to an institutional investor, in the original principal amount of $3,500,000. The transaction, which took place on December 16, 2024, is part of a Securities Purchase Agreement previously entered into by the Company with the Investor.

According to the details outlined in the 8-K SEC filing, the Eighth Additional Note was offered under the Company’s existing Indenture with U.S. Bank Trust Company, National Association. This note is part of a larger agreement allowing for the issuance and sale of senior secured convertible notes and warrants to purchase shares of the Company’s common stock. The investor, in this case, has opted to waive its right to receive warrants connected to the Eighth Additional Note issuance.

The Securities Purchase Agreement provides for additional closings for up to $100,014,286 in aggregate principal amount of additional notes, along with corresponding warrants, subject to specific conditions outlined in the filing. The prior notes issued by the Company amount to $35,485,714, with warrants to purchase up to 15,640,900 shares of Common Stock, following adjustments due to a 1-for-20 reverse stock split in June 2024.

The Eighth Additional Note carries an original issue discount of 12.5% and is a senior, secured obligation of the Company. It accrues interest at a rate of 9.0% per annum, payable quarterly, with provisions for optional cash or in-kind payments. The note is convertible into Common Stock at the lower of $0.5983 or a calculated reference price. It also contains customary affirmative and negative covenants, events of default, and prepayment options.

Furthermore, the filing discloses a limited waiver agreement between the Company and the Investor concerning certain provisions of the Securities Purchase Agreement. Under specific circumstances, such as a change of control, the investor can trigger redemptions of principal and interest on the Eighth Additional Note.

The issuance of the Eighth Additional Note and the shares of Common Stock available for conversion have been registered under the Company’s effective shelf registration. The complete terms and conditions of the Securities Purchase Agreement, along with related agreements, are available in the Company’s Form 8-K filed on March 15, 2024.

Workhorse Group Inc. emphasized that certain statements in the filing are forward-looking and subject to risks and uncertainties, as detailed under the Private Securities Litigation Reform Act of 1995. Interested parties can find additional factors affecting actual results in the Company’s reports submitted to the Securities and Exchange Commission.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Workhorse Group’s 8K filing here.

About Workhorse Group

Workhorse Group Inc, a technology company, engages in design, manufacture, and sale of zero-emission commercial vehicles in the United States. The company offers commercial vehicles under the Workhorse brand. The company was formerly known as AMP Holding Inc and changed its name to Workhorse Group Inc in April 2015.