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Zoomcar to Raise $9.15 Million from Institutional Investors

• ByStartupStory     |    November 7, 2024

Zoomcar, a leading NASDAQ-listed self-drive car-sharing platform, has announced the pricing of a private placement offering with certain institutional investors. The company aims to raise gross cash proceeds of $9.15 million before expenses, which will be primarily used for repaying outstanding debt and supporting its corporate objectives.

The private placement involves the issuance of approximately 2,137,850 units, each priced at $4.28. Each unit consists of a common share or a pre-funded warrant, along with two Series A warrants, which can be converted into common shares at $4.03 per share, and one Series B warrant with an exercise price of $0.0001. The Series A warrants will be valid for five years, while the Series B warrants can be exercised until fully executed.

In a statement, Zoomcar shared its plans for the proceeds, saying, “Zoomcar said it plans to use the net proceeds to repay $3.6 million of outstanding debt to certain institutional creditors and for general corporate purposes and working capital.”

The conversion of Series A and Series B warrants is contingent on shareholder approval, as per the company’s announcement. Furthermore, the conversion terms and the number of common shares to be issued may be adjusted based on future stock splits or reverse splits.

The transaction is expected to close on November 6, 2024, with Aegis Capital serving as the exclusive placement agent for the offering.

Zoomcar, which allows users to rent self-drive cars in major Indian cities and internationally, has been navigating challenging market conditions while focusing on streamlining its financial structure and positioning itself for future growth.

 

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