Self-drive car-sharing marketplace, Zoomcar, successfully priced a private placement, raising approximately $9.15 million in gross proceeds. This private placement is with select institutional investors and comes as Zoomcar looks to expand its operations and manage debt obligations.
Before deductions for placement agent fees and other expenses, Zoomcar expects to receive $9.15 million in gross cash. The company plans to use these funds primarily to repay around $3.6 million of outstanding debts owed to certain institutional creditors. The remaining funds will be allocated for general corporate purposes and to bolster working capital.
In total, the company is issuing 2,137,850 units as part of this placement, with each unit priced at $4.28. Each unit consists of one share of common stock (or a pre-funded warrant) and two Series A warrants, each allowing the holder to purchase one additional share of common stock at an initial exercise price of $4.03 per share.
Additionally, each unit includes a Series B warrant, exercisable at $0.0001, entitling the holder to a number of shares of common stock to be determined on the “Reset Date” specified within the Series B warrant.
The Series A warrants will be valid for five years, while the Series B warrants will remain exercisable until they are fully utilised. Both warrant types are adjustable on the Reset Date and may undergo further adjustments upon future stock issuances or any reverse stock splits, with certain limits in place. Detailed terms of these adjustments will be outlined in a forthcoming Form 8-K report, which the company plans to file in connection with this private placement.
Zoomcar said the placement’s closure is expected around 6 November 2024, pending the fulfilment of standard closing conditions. Aegis Capital Corp. is serving as the exclusive placement agent for the transaction.
The securities issued are exempt from the registration requirements under the US Securities Act of 1933. As such, they may not be sold or offered within the United States without a valid registration statement or applicable exemption.
Under a registration rights agreement, Zoomcar has committed to filing one or more registration statements with the Securities and Exchange Commission (SEC) to cover the resale of common stock issued as part of this private placement, as well as common stock issuable upon the exercise of the warrants