Workhorse’s stock gains after securing $200 million in financing through convertible notes

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Shares of Workhorse Group Inc. rose 2.7% in premarket trading Monday, after soaring 13% the previous session, after the electric van and drone maker said it secured $200 million in financing from institutional lenders. The company said it an agreement to sell $200 million worth of 4.0% senior secured convertible notes due 2024. The company plans to use the proceeds from the sale to increase production, advance new products to market, refinance debt and for general corporate purposes. The notes can be convertible into common stock at $36.14, which is 35% above Friday’s closing price of $26.77. “With this financing in place, we can more quickly advance our production efforts heading into 2021 by increasing our supply chain component volumes, hiring more manufacturing employees and automating certain sub-assembly processes,” said Chief Executive Duane Hughes. The stock has rocketed 781% year to date through Friday, while the S&P 500 has gained 7.6%.
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