BANGALORE, India, Nov. 7, 2024
/PRNewswire/ -- Zoomcar Holdings, Inc. ("Zoomcar" or the
"Company") (NASDAQ: ZCAR), the Nasdaq-listed leading marketplace
for self-drive car sharing, today announced the closing of a
private placement with certain institutional investors. The
aggregate gross cash proceeds were $9.15
million, before deducting fees to the placement agent and
other offering expenses payable by the Company, and includes a
$2.5 million investment by one of the
Company's directors. The Company used the net proceeds from the
private placement to repay approximately $3.8 million of outstanding indebtedness to
certain institutional investors and intends to use the remainder
for general corporate purposes and working capital.
In connection with the private placement, the Company issued an
aggregate of 2,137,850 units. Each unit was sold at an
effective unit price of $4.28 per
unit and consisted of one share of common stock (or one pre-funded
warrant in lieu thereof), two (2) Series A warrants, each
exercisable for one share of common stock at an initial exercise
price of $4.03 per share and
resulting in the issuance of Series A warrants exercisable for an
aggregate of up to 4,275,700 shares common stock, 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 (as defined in
the Series B warrant). The Series A warrants and the Series B
warrants are exercisable beginning on the date that Stockholder
Approval (as defined in the Series A warrant) is obtained. The
Series A warrants have a term of 5 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 of $0.806, 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.
Aegis Capital Corp. acted as the Exclusive Placement Agent
for the private placement.
The securities described above were sold in a private placement
exempt from the registration requirements of the Securities Act of
1933, as amended (the "Act"), and have not been registered under
the Act, or applicable state securities laws. Accordingly, the
securities may not be offered or sold in the United States except pursuant to an
effective registration statement or an applicable exemption from
the registration requirements of the Act and such applicable state
securities laws. Pursuant to a registration rights agreement with
the investors, the Company has agreed to file one or more
registration statements with the Securities and Exchange Commission
(the "SEC") covering the resale of the common stock sold in the
private placement and the common stock issuable upon exercise of
the pre-funded warrants and the warrants sold in the private
placement.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any of the securities described
herein, nor shall there be any sale of these securities in any
state or jurisdiction in which such offer, solicitation, or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
About Zoomcar
Founded in 2013 and headquartered in Bengaluru, India, Zoomcar is a leading marketplace for
car sharing focused in India. The
Zoomcar community connects Hosts with Guests, who choose from a
selection of cars for use at affordable prices, promoting
sustainable, smart transportation solutions in India.
Safe Harbor Statement
This press release contains, or may contain, among other things,
certain "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve significant risks and
uncertainties. Such statements include, without limitation,
statements related to the closing of this offering, the exercise of
the warrants and receipt the proceeds therefrom, the ability for
the Company to utilize the financing to fund operations and other
statements identified by words such as "projects," "may," "will,"
"could," "would," "should," "believes," "expects," "anticipates,"
"estimates," "intends," "plans," "potential" or similar
expressions. These statements are based upon the current beliefs
and expectations of the Company's management and are subject to
significant risks and uncertainties, including, but not limited, to
market conditions and those other risks detailed in the Company's
filings with the Securities and Exchange Commission. Actual results
and timing may differ significantly from those set forth or implied
in the forward-looking statements. Forward-looking statements
involve certain risks and uncertainties that are subject to change
based on various factors (many of which are beyond the Company's
control). The Company undertakes no obligation to publicly update
any forward-looking statements, whether as a result of new
information, future presentations or otherwise, except as required
by applicable law.
Press Contact:
- Akarshit Gulati: akarshitg@avianwe.com
- Bhagyashree Rewatkar:
bhagyashree.rewatkar@zoomcar.com
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SOURCE Zoomcar