Workhorse announced a $200 million financing deal with institutional lenders, which should result in $194.5 million in proceeds.
After closing the deal, the company will have over $270 million in cash available and at least several ideas on how to spend it.
First of all, part of the cash will be used to replace previous higher cost financings, and support current working capital and other general corporate purposes.
Another goal is to expand the lineup by a:
- refrigeration truck for grocery applications
- purpose-built class 2 delivery van
Workhorse CEO Duane Hughes said:
"With this financing in place, we can more quickly advance our production efforts heading into 2021 by increasing our supply chain component volumes, hiring more manufacturing employees and automating certain sub-assembly processes. We can also accelerate our production timeline for new, high-demand customer products, including a refrigeration truck for grocery applications as well as a purpose-built class 2 delivery van, allowing us to address one of the fastest growing vehicle markets in the U.S. These new vehicles within our portfolio of products, along with the expanding operations of our drone business, will help to further solidify our leadership and reach in the last-mile EV delivery segment."
Time will tell whether Workhorse will manage to really expand its business. The company hoped to deliver 300-400 electric vans by the end of this year and maybe Q3 results will reveal the current status.