Workhorse CEO: "We now have all necessary pieces in place to bridge Workhorse into full-scale N-GEN production"

Workhorse Group announced a private offering with a group of institutional investors, which resulted in $25 million of additional financing.

According to the press release, the proceeds will allow the company to complete the development of an all-electric N-GEN commercial delivery van and start production in Q4 2019.

"The closing with respect to approximately $15,000,000 occurred on May 31, 2019, and the balance of approximately $10,000,000 will close today, June 10, 2019. The proceeds will be used for general working capital and research and development, allowing the company to focus on finalizing the R&D associated with the N-GEN followed by production of the existing contracted backlog."

Company CEO Duane Hughes said:

"This funding provides Workhorse with sufficient capital to fully deliver on our existing backlog and will enable us to make significant strides in our strategic vision of being a leader in the electric last mile delivery space. We now have all necessary pieces in place to bridge Workhorse into full-scale N-GEN production and are looking forward to commencing the manufacturing process, in earnest, during the fourth quarter of this year."

Manufacturing of the N-GEN will take place at the Workhorse's Union City, IN plant in partnership with Prefix Corporation.

Currently, Workhorse doesn't say much about the N-GEN on its website, besides:

NGEN-1000 is the future of delivery vehicles.

• A lightweight, all-electric delivery vehicle with a 5,600 lb. curb weight
• It weighs less than half the weight of a diesel step-van while still offering 1,000 of storage space
• Built with composites, and a 100-mile range, it’s expected to be more economical than traditional delivery vehicles
• Its 6,500 lb. carrying capacity is robust enough for heavy loads
• Its low floor, with 7.25” ground clearance, makes access easier and faster making it more
• An ergonomic driving position that comfortably fits drivers from 5’2” to 6’5”
• Soon to be available in four cargo sizes: 450, 650, 1,000, and 1,200 cubic feet

So far there is no news also on the talks with GM about the purchase of the Lordstown Complex in Lordstown, Ohio.

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Workhorse Group Secures $25 Million Financing

Jun 10, 2019

New Capital Enables Workhorse to Finalize N-GEN R&D and Scale Production in 2019

CINCINNATI, June 10, 2019 /PRNewswire/ -- Workhorse Group Inc. (NASDAQ:WKHS) ("Workhorse" or "the Company"), an American technology company focused on providing sustainable and cost-effective electric-mobility solutions to the transportation sector, has entered into subscription agreements for a private offering with a group of institutional investors, resulting in gross proceeds to the Company of $25 million.

Under the terms of the agreements, the investors acquired shares of Series B preferred stock and warrants to purchase common stock. The Series B preferred stock is not convertible, but the holders are entitled to annual dividends payable in shares of common stock. Full details relating to the private offering can be found in the Company's Form 8-K filed with the Securities and Exchange Commission on June 6, 2019.

The closing with respect to approximately $15,000,000 occurred on May 31, 2019, and the balance of approximately $10,000,000 will close today, June 10, 2019. The proceeds will be used for general working capital and research and development, allowing the company to focus on finalizing the R&D associated with the N-GEN followed by production of the existing contracted backlog.

"This funding provides Workhorse with sufficient capital to fully deliver on our existing backlog and will enable us to make significant strides in our strategic vision of being a leader in the electric last mile delivery space," said Company CEO Duane Hughes. "We now have all necessary pieces in place to bridge Workhorse into full-scale N-GEN production and are looking forward to commencing the manufacturing process, in earnest, during the fourth quarter of this year."

Separately, on April 23, 2019, Workhorse also terminated its preexisting At-the-Market (ATM) Offering Sales Agreement with Cowen and Company, which had been in place since June 2017.