Zoomcar, a self-drive car-sharing service, has successfully completed a private fundraising round, raising about $9.15 million before fees and expenses. This funding comes from selected institutional investors and will help Zoomcar grow its business and manage its debts. The main use of this money will be to pay off around $3.6 million in debts to specific creditors. The leftover funds will support general company needs and enhance working capital.
Zoomcar is offering 2,137,850 units in this placement, with each unit priced at $4.28. Each unit includes one share of common stock or a pre-funded warrant, along with two Series A warrants that let the holder buy an extra share at $4.03 each. Additionally, each unit comes with a Series B warrant, which can be exercised at $0.0001, granting the holder a number of shares decided on a specified “Reset Date.”
The Series A warrants are valid for five years, while the Series B warrants can be used until fully exercised. Both types of warrants can adjust on the Reset Date and may change further with future stock sales or reverse stock splits, within certain limits. Details on these adjustments will be provided in a future Form 8-K report that the company will file regarding this placement.
The securities from this transaction do not need to be registered under the US Securities Act of 1933, meaning they cannot be sold or offered in the United States without proper registration or exemption.
Zoomcar has also promised to file registration statements with the Securities and Exchange Commission (SEC) to cover the resale of common stock from this private placement and shares that may come from exercising the warrants.