Workhorse Group Inc. Enters into Discussions with Electric Vehicle Manufacturer for Potential Transaction

Strategic Insights -

Workhorse Group Inc., an American technology company focused on pioneering the transition to zero-emission commercial vehicles, has announced that it is in discussions with a privately held U.S.-based manufacturer of electric commercial vehicles regarding a potential transaction. The talks are centered around a potential merger of the electric vehicle manufacturer into a newly created subsidiary of Workhorse, with the manufacturer's current investors holding a substantial majority of the Company's outstanding common stock following consummation of the transaction. The discussions have been ongoing, with the Company currently expecting that the merger would result in the repayment of its outstanding obligations under its senior secured convertible notes, the cancellation of the related warrants, and the issuance of approximately 3 million newly issued common shares.

Key Takeaways:

  • Workhorse Group Inc. is in discussions with a privately held U.S.-based manufacturer of electric commercial vehicles for a potential transaction, which involves a merger of the manufacturer into a newly created subsidiary of Workhorse.
  • The transaction is expected to result in the repayment of the Company's outstanding obligations under its senior secured convertible notes and the cancellation of the related warrants.
  • The manufacturer's current investors would hold a substantial majority of the Company's outstanding common stock following consummation of the transaction.
  • Workhorse expects to repay its outstanding obligations under the Notes in full, but would not be required to pay a redemption premium or other premium or penalty.
  • The Investor would receive approximately 3 million newly issued common shares as consideration for the Potential Refinancing.
  • The transaction is subject to approval by the Company's stockholders and Nasdaq, and other customary conditions.
  • There can be no assurance that the potential parties will ever reach agreement on terms or enter into such agreements and no party is under any obligation to do so.
  • The Potential Transaction may never be consummated or may be consummated on terms materially different from the terms described above.

Statistics:

  • Approximate outstanding obligations under the Notes: $33 million
  • Anticipated number of newly issued common shares: approximately 3 million
  • Percentage of the Company's outstanding common stock expected to be held by the manufacturer's current investors: substantial majority

Sources:

  • Workhorse Group Inc., press release, July 14, 2025
  • SEC, Workhorse Group Inc., Current Report 8-K, July 14, 2025
  • Nasdaq, Market News, July 14, 2025