AUSTIN, TX/ACCESSWIRE/August 22, 2022/ Volcon Inc. (NASDAQ: VLCN), (“Volcon” or the “Company”), the premier all-electric off-road powersports company, today announced that it has entered into a securities purchase agreement on August 22, 2022 to issue to an investor $27.2 million aggregate principal amount of convertible senior notes due 2024 (the “Notes”) and accompanying warrants (the “Warrants”) to purchase approximately 9.1 million common shares.
The Notes will be senior unsecured obligations of Volcon and no interest will accrue unless and until an Event of Default has occurred. Each of the Bonds will include an initial issue discount of 8.0%. The Notes will mature on February 24, 2024, unless converted earlier (only upon satisfaction of certain conditions). The initial conversion price will be $2.25 per common share, subject to adjustment in the event of specified events.
The warrants are exercisable immediately on the date of issue and will have an initial exercise price of $2.85. The Warrants will expire five years from the date of issue.
The sale of the tickets is expected to close on August 24, 2022, subject to customary closing conditions.
Aegis Capital Corp. is acting as the exclusive placement agent for the Offering.
The securities described above are being sold pursuant to a private placement and have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States without registration with the Securities and Exchange Commission (the “SEC”) or an applicable exemption from such registration requirements. The securities were only offered to qualified investors. Pursuant to a registration rights agreement with investors, the Company has agreed to file one or more registration statements with the SEC covering the resale of common stock issuable upon conversion of the Notes and the exercise warrants.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, and there will be no sale of such securities in any state or jurisdiction in which a such offer, solicitation or sale would be unlawful. prior to registration or qualification under the securities laws of any such state or territory.
Volcon Inc. is the first all-electric powersports company to produce high-quality off-road vehicles. Based in Round Rock, Texas, Volcon joins many major electric vehicle manufacturers near Austin, Texas, an area that is fast becoming the electric vehicle capital of the world.
Volcon was founded with a mission to enhance the outdoor experience while reducing the industry’s environmental footprint so that adventurers and workers can enjoy the outdoors and preserve it for generations to come. Volcon produces all-electric all-terrain vehicles designed to elevate the adventure experience and help people get things done at work and at home.
Volcon’s first product, the innovative Grunt, combines a large physical tire with high-torque electric power and a near-silent drivetrain that began shipping in September 2021. Future models may include the Runt, which is a version youngster from the revolutionary Grunt and an electric bike, the Brat. The stag and Project X are expected to be Volcon’s venture into the rapidly expanding world of UTVs and are expected in the years to come as the company continues to grow.
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For more information about Volcon or to learn more about its full line of motorcycles and side-by-sides, visit: www.volcon.com
Some of the statements contained in this press release are forward-looking statements, which involve risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date they are made, the expectations may turn out to be materially different from the results expressed or implied by these forward-looking statements. The Company has attempted to identify forward-looking statements by terminology including “believes”, “estimates”, “anticipates”, “,, ”intends” ”potential” ”may” ”could ” ”may” ”will” ”should” ”approximately” or other words that convey uncertainty of future events or results to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties and other factors. All forward-looking statements contained in this press release speak only as of its date. The Company undertakes no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after the date thereof or to reflect the occurrence of unforeseen events. More detailed information about the risks and uncertainties affecting the Company can be found under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the SEC, which are available on the SEC’s website, www.sec.gov.
THE SOURCE: Volcon ePowersports, Inc.
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