Workhorse Group Inc. entered into a securities purchase agreement with an institutional investor for issuance of senior secured convertible notes for up to an aggregate principal amount of $139,000,000 on March 15, 2024. The company also issued warrants to purchase shares in multiple tranches over a period beginning on March 15, 2024.

On the same day, the company issued a note in the original principal amount of $9,000,000 for gross proceeds of $7,875,000 in its first tranche closing. The company also issued warrant to purchase up to 31,992,890 shares. Each note will be issued with original issue discount of 12.5%. Each note will bear interest at a rate of 9% per annum, payable in arrears on the first trading day of each calendar quarter, at the company?s option, either in cash or in-kind by compounding and becoming additional principal. The exercise price per share of common stock under the initial warrant is $0.35. following issuance, the warrants are immediately exercisable for a period of 10 years following their issuance date.