Zoomcar Holdings completes $3M private placement offering

Zoomcar Holdings, Inc., a company based in Bangalore, India, recently completed a private placement offering, securing approximately $3 million through the issuance of senior non-convertible notes and warrants to institutional investors. The notes, valued at $3.6 million, were sold at a discount of around 16.67% and will accrue interest at a rate of 15% per year, increasing to 20% in case of default. These notes are set to mature within nine months of issuance or upon specific capital raises or asset sales that generate sufficient funds for repayment.

The accompanying warrants enable the purchase of about 53 million shares of the company's common stock at an exercise price of $0.1416 per share. To prevent any single holder from owning more than 4.99% of the company's outstanding shares, there are exercise limitations in place. The warrants also include provisions for adjustments in the event of dilutive issuances and reverse stock splits.

The proceeds from this offering, in conjunction with the company's existing funds, will be utilized for general corporate purposes and working capital needs. Aegis Capital Corp. acted as the Exclusive Placement Agent for this private placement transaction.

Founded in 2013 and headquartered in Bengaluru, India, Zoomcar operates as a car-sharing marketplace, connecting car owners (Hosts) with users (guests) looking for affordable transportation options. By offering a range of vehicles at competitive prices, Zoomcar promotes sustainable and efficient mobility solutions in developing regions.

This announcement may include forward-looking statements regarding the company's future product development and business growth plans. While these statements are based on current information and assumptions, they are subject to risks and uncertainties that could affect actual outcomes. The company does not guarantee the accuracy of these forward-looking statements and will only update them if required by law.

Zoomcar Holdings, Inc.'s successful private placement offering highlights the company's commitment to expanding its operations and enhancing its services in the car-sharing marketplace. With the raised funds earmarked for general corporate purposes and working capital needs, Zoomcar is poised to further its mission of providing affordable and sustainable transportation solutions in emerging markets.