Zoomcar to sell 2.137M shares at $4.03 in private placement

Zoomcar (ZCAR) announced the pricing of a private placement with certain institutional investors. The aggregate gross cash proceeds are expected to be $9.15M, before deducting fees to the placement agent and other offering expenses payable by the company. The company intends to use the net proceeds from the private placement to repay approximately $3.6M of outstanding indebtedness to certain institutional creditors and for general corporate purposes and working capital. In connection with the private placement, the company is planning to issue an aggregate of 2,137,850 units. Each unit will be sold at an effective unit price of $4.28 per unit and will consist of one share of common stock, two Series A warrants, each exercisable for one share of common stock at an initial exercise price of $4.03 per share and one Series B warrant at an exercise price of $0.0001 to purchase such number of shares of common stock as will be determined on the Reset Date. The Series A warrants and the Series B warrants are exercisable beginning on the date that stockholder approval is obtained. The Series A warrants will have a term of five years and the Series B warrants are exercisable until exercised in full. The exercise price and number of shares of common stock issuable upon exercise of the Series A warrants are subject to adjustment on the reset date, upon future dilutive issuances and following reverse stock splits, in each case, subject to a floor, and the exercise price and number of shares of common stock issuable upon exercise of the Series B warrants are subject to adjustment upon reverse stock splits, subject to a floor, and in each case, as will be described in more detail in the Current Report on Form 8-K to be filed in connection with the private placement.