Zoomcar Holdings, Inc. Announces Closing of Sale of $3.6 Million Notes Private Placement
Rhea-AI Summary
Zoomcar Holdings, a car-sharing marketplace in emerging markets, announced the closing of a $3.6 million private placement of promissory notes and investor warrants. The transaction is expected to generate gross proceeds of $3 million. The senior non-convertible notes, issued with a 16.67% discount, will bear interest at 15% per year, increasing to 20% in event of default, and mature within nine months or upon sufficient capital raises. Warrants issued allow for the purchase of 53 million shares at $0.1416 per share. These will be exercisable six months post-issuance or upon shareholder approval and expire five years post-approval. Aegis Capital Corp. acted as the exclusive placement agent. Proceeds will be used for corporate purposes and working capital.
Positive
- None.
Negative
- Notes issued with a 16.67% discount, indicating potentially unfavorable borrowing terms.
- High-interest rate of 15% per year on the notes, increasing to 20% in the event of default.
- Short maturity period of nine months for the notes, adding financial pressure.
- Potential dilution with warrants allowing purchase of 53 million shares at a low exercise price of $0.1416.
News Market Reaction – ZCAR
In the trading session that priced this news, ZCAR gained 3.08%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
The offering consisted of the sale of (i) senior non-convertible notes in an aggregate principal amount of
The Notes will be the senior unsecured obligations of the Company and were issued with an original issue discount of approximately
The Warrants are exercisable beginning on the later of (a) the six-month anniversary of issuance and (b) the date the Company obtains stockholder approval. The Warrants expire five years after the later of (x) stockholder approval and (y) the date the Warrant shares may be sold pursuant to an effective registration statement or exemption from registration. The Warrants are subject to exercise price and corresponding share adjustments for certain dilutive issuances and resets following reverse stock splits, in each case, subject to a floor price, and also contain an alternative cashless exercise provision permitting for the cashless exchange of the Warrants for an equal number of shares. The Warrants contain certain exercise limitations, providing that no exercise may be made if, after giving effect to the exercise, the holder, together with any of its affiliates, would own in excess of
The Company expects to use the net proceeds from the offering, together with its existing cash, for general corporate purposes and working capital.
Aegis Capital Corp. acted as Exclusive Placement Agent for the private placement.
The securities described above were sold in a private placement transaction not involving a public offering and have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or applicable state securities laws. Accordingly, the securities may not be reoffered or resold in
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Zoomcar Holdings, Inc.
Founded in 2013 and headquartered in Bengaluru,
Forward-Looking Statements
The foregoing material may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation statements regarding the Company's product development and business prospects, and can be identified by the use of words such as "may," "will," "expect," "project," "estimate," "anticipate," "plan," "believe," "potential," "should," "continue" or the negative versions of those words or other comparable words. Forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of risks and uncertainties that could significantly affect current plans. Should one or more of these risks or uncertainties materialize, or the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, performance, or achievements. Except as required by applicable law, including the security laws of
Media Contacts:
Gateway Group, Inc. (
ZCAR@gateway-grp.com
(949) 574-3860
Zoomcar
Bhagyashree Rewatkar
bhagyashree.rewatkar@zoomcar.com
View original content:https://www.prnewswire.com/news-releases/zoomcar-holdings-inc-announces-closing-of-sale-of-3-6-million-notes-private-placement-302178501.html
SOURCE Zoomcar Holdings, Inc.