- On August 31, Arcimoto ( NASDAQ: FUV ) raises up to $20M of senior secured convertible notes in a registered direct offering.
- The offering is expected to close on September 1, 2022.
- Net proceeds will be used for working capital and general corporate purposes.
- The notes will be payable in monthly installments beginning October 1, 2022, will accrue interest at a rate of 6% per annum and will mature 24 months after the initial closing.
- $10n of the Notes will be funded at the initial closing and $10M is expected to be funded at a second closing.
- Additionally, the company will also issue to the investor warrants to purchase 500K shares of common stock, an amount equal to 25 percent of the number of shares that would be issued if the outstanding principal amount of the Notes issued at such closing is converted.
- The warrants will be initially exercisable at $10.00 per share.
- Shares down 1.4% PM.
For further details see:
Arcimoto raises $20M of convertible notes via registered direct offering