Workhorse Group Inc. (Nasdaq: WKHS), an American technology company focused on providing drone-integrated electric vehicles to the last-mile delivery sector, closed the previously announced $200m financing.
Antara Capital GP LLC was the lead investor.
The notes are convertible into common stock by the holders at $35.29 per share as adjusted prior to closing, mature in four years and bear interest at a rate of 4.0% per year, which rate may be reduced to 2.75% if the company meets certain conditions. Interest is payable in quarterly installments and can be paid at the company’s option either in cash or, subject to certain conditions, shares of common stock.
The funds will allow an acceleration of production, an advancement of new products directly for the last-mile delivery market and an expansion of drone operations.
When the proceeds of the financing are released from escrow, the company will receive $194.5 million in net proceeds after payment of certain fees and expenses.
Workhorse is a technology company focused on providing drone-integrated electric vehicles to the last-mile delivery sector. As an American original equipment manufacturer, they design and build high performance, battery-electric vehicles including trucks and aircraft. Workhorse also develops cloud-based, real-time telematics performance monitoring systems that are fully integrated with vehicles and enable fleet operators to optimize energy and route efficiency. All vehicles are designed to make the movement of people and goods more efficient and less harmful to the environment.