TBM Staff - Mumbai
Zoomcar Holdings, Inc. announced it has raised USD 9.15 million through a private placement with institutional investors. The funding will assist the company in repaying approximately USD 3.6 million of existing debt, with the balance earmarked for general corporate purposes and to support working capital needs. This private placement underscores Zoomcar’s strategy to strengthen its financial position and enhance operational flexibility.
In this transaction, Zoomcar will issue 2,137,850 units priced at USD 4.28 each. Each unit comprises one share of common stock or a pre-funded warrant, two Series A warrants, and one Series B warrant. The Series A warrants allow for the purchase of additional common shares at an initial price of USD 4.03 and have a five-year term, while the Series B warrants are exercisable at USD 0.0001 and remain effective until fully utilised. Both warrant types are subject to stockholder approval and certain adjustment terms, including potential price resets and stock splits.
The closing of the private placement is slated for around November 6, 2024, pending customary closing conditions. Aegis Capital Corp. is serving as the exclusive placement agent, assisting Zoomcar with the transaction. The private placement benefits from an exemption under the Securities Act of 1933, meaning the securities offered in this placement are not registered and may not be sold in the United States without registration or an applicable exemption.
Zoomcar has agreed to file registration statements with the SEC to enable resale of the shares and warrants issued in the placement. This filing will allow investors the option to resell their securities in compliance with U.S. securities laws, thus supporting potential liquidity for investors. The announcement does not constitute a public offering or solicitation in any jurisdiction where such action would be restricted by law.
