Workhorse Group Reports 3ird Quarter 2019 Results.

CINCINNATI: Workhorse Group Inc. (NASDAQ: WKHS) ("Workhorse" or "the Company"), an American technology company focused on providing sustainable and cost-effective electric-mobility solutions to the transportation sector, today reported financial results for the third quarter ended September 30, 2019.

Third Quarter and Recent Operational Highlights

November 2019: Signed Intellectual Property Licensing Agreement (IPLA) with Lordstown Motors Corp. (LMC), a private corporate entity founded by former Workhorse CEO Steve Burns.

Agreement finalized in connection with General Motors (GM) Lordstown manufacturing facility acquisition announced on November 7, 2019.

Under the IPLA, Workhorse is granting LMC a three-year exclusive license of certain IP relating to the Company's W-15 electric pickup truck in exchange for an initial equity stake of 10% in LMC, which will be anti-dilutive for two years.

Workhorse is entitled to a license fee equal to 1% of the gross sales price of each LMC truck sold, up to the first 200,000 units.

LMC has agreed to pre-pay a portion of the license fee in an amount equal to 1% of the aggregate debt and equity commitments LMC intends to raise.

Once the pre-payment has been amortized over actual production, LMC will pay on a per unit shipped basis up to the 200,000 unit cap.

Workhorse will also receive an additional 4% commission on the gross sales price of trucks sold which fulfull the 6,000 existing pre-orders for the W-15 transferred from the Company to LMC.

October 2019: Partnered with Unmanned Systems Operations Group, Inc. (USOG) to launch an initial pilot drone delivery program in the San Diego area with the goal of pursuing additional programs for healthcare providers, pharmacies, and specialized medical courier services using Workhorse's HorseFly technology.

October 2019: Entered into an Asset Purchase Agreement with aerospace and defense company Moog for the sale of the Company's SureFlyTM electric helicopter for a cash purchase price of $4 million dollars as well as formed a joint venture (JV) involving the Company's HorseFly last-mile drone delivery system.

June 2019: Secured $25 million in financing from a private group of institutional investors, the proceeds of which will be used for general working capital and research and development, allowing the company to focus on finalizing the R&D associated with the N-GEN followed by production of its existing contracted backlog.

April 2019: Entered an alliance with...

To continue reading

Request your trial