Workhorse Group now has the financial flexibility to issue new stock and raise capital for the scaling of its electric truck makeover.
The Cincinnati-based company came very close to approval after counting 49.68% favorable proxies earlier in the week. On Friday, Workhorse said it had received more than required the 50% of outstanding shares to raise the authorized share count to 450 million shares from 200 million.
“We appreciate the support of our stockholders, which will enable us to fund Workhorse’s next phase of execution and growth, as we build a bridge to long-term value creation,” Workhorse CEO Rick Dauch said in a news release.
“We can now move forward with our near- and long-term plans, including advancing product roadmaps, supporting our [drone] business and investing in supplier tooling and assembly equipment for our W56 [Class 5 and 6 electric step van] production.”
The W56 features a 210-kilowatt-hour battery with 1,000 cubic feet of cargo capacity and a payload of about 10,000 pounds. Single-charge range is 150 miles. Recharging with Level 2 alternating current at 20 kilowatts takes about 12 hours. Level 3 direct current charging at 100kW takes three to four hours.
The Workhorse W56 electric step van is in early production. (Photo: Workhorse Group)
New shares critical to Workhorse’s future
The share authorization increase is critical to Workhorse’s future. The company had just $62.4 million in cash at the end of the second quarter. It needs significantly more money to scale the new trucks and a nascent delivery drone business.
Current leadership has revamped the product lineup, cleared debt from the balance sheet and updated its assembly plant in Union City, Indiana. The company is selling a Class 4 cab chassis and step van version of a GreenPower Motors product as a stopgap until the W56 production ramp gains traction.
Workhorse faced a higher bar to approval than electric truck and hydrogen distribution startup Nikola, which received approval from shareholders to double its authorized shares to 1.6 billion from 800 million on Aug. 3. Nikola needed only a majority of proxies in favor of its proposal rather than a majority of all outstanding shares.
Related articles:
Workhorse falls short on votes to increase share count
Cash-starved Workhorse Group seeks to create new shares
Workhorse Q1 loss grows but makeover nears completion
Click for more FreightWaves articles by Alan Adler.
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