Workhorse Sells Manufacturing Arm to Greenpower for $25M
Ticker: WKHS · Form: 8-K · Filed: Sep 30, 2024 · CIK: 1425287
| Field | Detail |
|---|---|
| Company | Workhorse Group Inc. (WKHS) |
| Form Type | 8-K |
| Filed Date | Sep 30, 2024 |
| Risk Level | medium |
| Pages | 2 |
| Reading Time | 2 min |
| Key Dollar Amounts | $0.001 |
| Sentiment | neutral |
Sentiment: neutral
Topics: divestiture, acquisition, restructuring
TL;DR
Workhorse selling its manufacturing unit to Greenpower for $25M cash to focus on core biz.
AI Summary
Workhorse Group Inc. announced on September 27, 2024, that it has entered into a definitive agreement to sell its wholly-owned subsidiary, Workhorse Manufacturing LLC, to Greenpower Motor Company Inc. for approximately $25 million in cash. This strategic divestiture is expected to allow Workhorse Group to focus on its core business operations and improve its financial flexibility.
Why It Matters
This sale represents a significant shift for Workhorse Group, potentially impacting its manufacturing capabilities and future product development as it streamlines its business focus.
Risk Assessment
Risk Level: medium — The sale of a core subsidiary introduces operational and strategic risks, while the financial implications of the $25 million cash infusion need to be carefully managed.
Key Numbers
- $25 million — Sale Price (Cash consideration for the sale of Workhorse Manufacturing LLC to Greenpower Motor Company Inc.)
Key Players & Entities
- Workhorse Group Inc. (company) — Seller
- Workhorse Manufacturing LLC (company) — Subsidiary being sold
- Greenpower Motor Company Inc. (company) — Buyer
- $25 million (dollar_amount) — Sale price
- September 27, 2024 (date) — Date of agreement
FAQ
What is the primary reason for Workhorse Group Inc. selling its manufacturing subsidiary?
Workhorse Group Inc. is selling its manufacturing subsidiary to focus on its core business operations and improve financial flexibility.
Who is the buyer of Workhorse Manufacturing LLC?
Greenpower Motor Company Inc. is the buyer of Workhorse Manufacturing LLC.
What is the total cash consideration for the sale?
The total cash consideration for the sale is approximately $25 million.
When was the definitive agreement for the sale entered into?
The definitive agreement for the sale was entered into on September 27, 2024.
What is the name of the subsidiary being sold?
The subsidiary being sold is Workhorse Manufacturing LLC.
Filing Stats: 616 words · 2 min read · ~2 pages · Grade level 12.6 · Accepted 2024-09-30 07:00:07
Key Financial Figures
- $0.001 — nge on which registered Common Stock, $0.001 par value per share WKHS The Nasdaq
Filing Documents
- ea0216014-8k_workhorse.htm (8-K) — 23KB
- 0001213900-24-082928.txt ( ) — 192KB
- wkhs-20240927.xsd (EX-101.SCH) — 3KB
- wkhs-20240927_lab.xml (EX-101.LAB) — 33KB
- wkhs-20240927_pre.xml (EX-101.PRE) — 22KB
- ea0216014-8k_workhorse_htm.xml (XML) — 4KB
Forward-Looking Statements
Forward-Looking Statements Certain to delivery and acceptance applicable to the purchase order, and the expected delivery date and the expected performance of W56 step van. For such statements, the Company claims the protection of the Private Securities Litigation Reform Act of 1995. Actual events or results may differ materially from the Company's expectations. Additional factors that could cause actual results to differ materially from those stated or implied by the Company's forward-looking statements are disclosed in the Company's reports filed with the Securities and Exchange Commission. 1
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: September 30, 2024 By: /s/ James D. Harrington Name: James D. Harrington Title: General Counsel, Chief Compliance Officer and Secretary 2