Volcon downshifts after convertible notes deal

Empery Digital

22/08/2022 20:47

** Volcon Inc  VLCN.O  shares down 20.0% at $1.94 after
off-road EV maker prices notes offering
    ** Shares drop as equities tumble on Mon on fears of
aggressive Fed with the Nasdaq  .IXIC  down 2.7%
    ** Co early Mon said it sold to an investor $27.2 mln
convertible senior notes due 2024 and warrants to buy 9.1 mln
shares  urn:newsml:reuters.com:*:nACSlp0d1a
    ** No interest shall accrue on notes unless and until an
event of default has occurred, and have original issue discount
of 8%
    ** Initial conversion price is $2.25/sh, subject to
adjustment upon the occurrence of specified events
    ** 5-yr warrants exercisable immediately with initial
exercise price of $2.85/sh
    ** VLCN's shares on Fri closed up 31.5% after co said it
received more than $100 mln of pre-production orders for its
first electric utility terrain vehicle, the Stag, powered by
General Motors  GM.N  electric technology  urn:newsml:reuters.com:*:nL4N2ZV2MG
    ** VLCN has ~24.3 mln shares outstanding and ~10.5 mln of
public float, per Refinitiv data
    ** Shares down nearly two thirds from Oct 2021 IPO price of
$5.50

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))