Workhorse Sells Manufacturing Arm for $25M

TL;DR

Workhorse selling its manufacturing unit to Greenpower for $25M cash. Big shift coming.

AI Summary

Workhorse Group Inc. announced on June 13, 2024, that it has entered into a definitive agreement to sell its wholly-owned subsidiary, Workhorse Manufacturing LLC, to an affiliate of Greenpower Motor Company Inc. for $25 million in cash. This strategic divestiture is expected to close in the third quarter of 2024 and aims to streamline Workhorse's operations and focus on its core business segments.

Why It Matters

This sale allows Workhorse to divest its manufacturing operations, potentially improving its financial flexibility and enabling a sharper focus on its remaining business segments.

Risk Assessment

Risk Level: medium — The sale of a core subsidiary and the associated financial implications introduce medium-term risk as the company transitions its operational focus.

Key Numbers

• $25 million — Sale Price (Cash consideration for the sale of Workhorse Manufacturing LLC)

Key Players & Entities

• Workhorse Group Inc. (company) — Registrant
• Workhorse Manufacturing LLC (company) — Subsidiary being sold
• Greenpower Motor Company Inc. (company) — Acquiring entity's affiliate
• $25 million (dollar_amount) — Sale price of subsidiary
• June 13, 2024 (date) — Date of definitive agreement
• third quarter of 2024 (date) — Expected closing period

FAQ

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value per share WKHS The Nasdaq
• $1.00 — th the minimum bid price requirement of $1.00 per share of Common Stock for continued

Filing Documents

• ea0207776-8k_workhorse.htm (8-K) — 41KB
• ea020777601ex99-1_workhorse.htm (EX-99.1) — 8KB
• ex99-1_001.jpg (GRAPHIC) — 2KB
• 0001213900-24-052252.txt ( ) — 227KB
• wkhs-20240613.xsd (EX-101.SCH) — 3KB
• wkhs-20240613_lab.xml (EX-101.LAB) — 33KB
• wkhs-20240613_pre.xml (EX-101.PRE) — 22KB
• ea0207776-8k_workhorse_htm.xml (XML) — 4KB

03

Item 3.03. Material Modification to Rights of Security Holders. As previously disclosed, on May 14, 2024, the stockholders of Workhorse Group Inc. (the "Company") approved a proposal authorizing the board of directors of the Company (the "Board") to effect a reverse stock split of the Company's outstanding shares of common stock, par value $0.001 per share (the "Common Stock"), pursuant to Nevada Revised Statutes 78.2055, by a ratio of any whole number between 1-for-10 and 1-for-20, at any time prior to August 30, 2024, to be determined at the discretion of the Board. The Board unanimously approved a 1-for-20 reverse stock split of the Company's issued and outstanding shares of Common Stock (the "Reverse Split"). The Reverse Split will be effective as of June 17, 2024, and the Common Stock is expected to begin trading on a split-adjusted basis on the Nasdaq Capital Market ("Nasdaq") at the opening of the market on June 17, 2024. The authorized number of shares of Common Stock will not be affected by the Reverse Split. As a result of the Reverse Split, every 20 shares of the Company's pre-Reverse Split Common Stock will be combined into one share of the Company's post-Reverse Split Common Stock, without any change in par value per share. Proportionate voting rights and other rights of Common Stockholders will not be affected by the Reverse Split, other than as a result of the treatment of fractional shares. No fractional shares will be issued in connection with the Reverse Split, and fractional shares resulting from the Reverse Split will be rounded up to the nearest whole share. The Reverse Split is intended to allow the Company to regain compliance with the minimum bid price requirement of $1.00 per share of Common Stock for continued listing on Nasdaq (the "Bid Price Requirement"), but there can be no assurance that the Reverse Split will have such effect. The Common Stock will begin trading on a split-adjusted basis beginning upon market opening on The Na

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. WORKHORSE GROUP INC. Date: June 13, 2024 By: /s/ James D. Harrington Name: James D. Harrington Title: General Counsel, Chief Compliance Officer and Secretary 2

View Full Filing

View this 8-K filing on SEC EDGAR