CINCINNATI, Dec. 9, 2015 (GLOBE NEWSWIRE) -- Workhorse Group Inc. (OTCQB:WKHS), a U.S. domestic developer and OEM of medium duty electric trucks, completed a private placement of $13.5 million principal amount of convertible notes and warrants with existing and new accredited investors. Maxim Group LLC acted as sole placement agent in connection with the transaction.
"We appreciate the confidence expressed by existing and new shareholders to provide this funding to our company as we move ahead on our previously stated business execution plan, which includes delivering our trucks to customers in early 2016," said Steve Burns, CEO of Workhorse Group.
Workhorse received approximately $11.9 million in proceeds, net of placement fees and expenses, in connection with the two closings of this offering on November 9 and December 4, 2015. The two-year notes carry interest at 6% per annum and are mandatorily convertible upon certain events including the company listing its shares on a national exchange. The investors also received warrants to purchase an aggregate of approximately 38.5 million shares of common stock. Any funds received from warrant conversion to common stock would be incremental to the offering.
The full terms of the transaction have been filed in an 8-K dated December 7, 2015, and Workhorse Group encourages investors to read the filing for a better understanding of all terms of the funding.
This press release does not and shall not constitute an offer to sell, or the solicitation of an offer to buy, any of the securities, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration under the securities laws of any state or jurisdiction.
About Workhorse Group, Inc.
Workhorse Group Inc. is the parent company of AMP Electric Vehicles Inc. and AMP Trucks Inc. AMP Electric Vehicles manufactures electric drive systems for medium-duty, class 3-6 commercial truck platforms. AMP Trucks Inc., which purchased the assets of Workhorse Custom Chassis LLC from Navistar in March of 2013, can equip its Workhorse chassis with gasoline, propane, or CNG engines in addition to all-electric. Workhorse Group's HorseFly line of Unmanned Aerial Vehicles (UAV) is designed to be the 'last mile' solution in delivery logistics. The HorseFly is differentiated from other UAVs as it is designed to work in tandem with a Workhorse electric truck. HorseFly is designed to deliver packages, loaded on-route by the truck's driver, to remote locations, while the driver continues on the main delivery route. For additional information visit www.workhorse.com.
This press release includes forward-looking statements, which may be identified by words such as "believes," "expects," "anticipates," "estimates," "projects," "intends," "should," "seeks," "future," "continue," or the negative of such terms, or other comparable terminology. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein. Factors that could cause actual results to differ materially include, but are not limited to: our limited operations and need to expand in the near future to fulfill product orders; risks associated with obtaining orders and executing upon such orders; the ability to protect our intellectual property; the potential lack of market acceptance of our products; potential competition; our inability to retain key members of our management team; our inability to raise additional capital to fund our operations and business plan; our inability to achieve a listing of our securities on a major securities exchange; our ability to continue as a going concern; our liquidity and other risks and uncertainties and other factors discussed from time to time in our filings with the Securities and Exchange Commission ("SEC"), including our annual report on Form 10-K filed with the SEC. Workhorse expressly disclaims any obligation to publicly update any forward-looking statements contained herein, whether as a result of new information, future events or otherwise, except as required by law.
CONTACT: Daniel Zito Executive Vice President Workhorse Group Inc. 513-300-5910 Media: Laura Radocaj Dian Griesel Int'l. 212-825-3210Source:Workhorse Group Inc.