Arcimoto, Inc. announced that it has entered into a securities purchase agreement to issue 8,466 series D convertible preferred shares at a price of $800 per share and warrant at the price of $800 per share for the gross proceeds of $6.7725 million on August 15, 2023. The preferred shares have a coupon rate of 8% and are convertible into an aggregate of 1,760,298 shares of the common stock of the company at a conversion price of $1.20 and warrants to purchase up to an aggregate of 14,110,417 shares of common stock at an exercisable price of $1.50 per share, will be exercisable upon the earlier of six months from the first closing date or the date that the company has received shareholder approval of the transaction. As a part of the transaction, the company will pay $0.4725 as placement agent fees and expenses and estimated offering expenses payable by the company.
On the same date, the company received $4.515 million in its first tranche closing. The second closing of the transaction for $2.2575 million will occur after the date that the company has received shareholder approval.