Arcimoto announces $6.7M Series D Preferred Stock, Warrant offering

Arcimoto announced the entry into agreements with certain investors relating to the sale of up to 8,466 shares of its Series D 8% Convertible Preferred Stock and warrants to purchase up to 14,110,417 shares of common stock in a private placement, at a combined purchase price of $6,772,500, before deducting placement agent fees and other offering expenses. For purposes of conversion into common stock, the Series D 8% Convertible Preferred Stock has a stated value of $8,465,625, which represents an original issue discount of 20%. The warrants to be issued will have an exercise price of $1.50 per share, a term of five years and will be exercisable upon the earlier of the six-month anniversary or the date that the Company has received shareholder approval of the Transaction and the common stock underlying such warrants has been registered with the SEC for resale. The first closing of the Transaction for $4,515,000 occurred on August 15, 2023. The second closing of the Transaction for $2,257,500 will occur after the date that the Company has received shareholder approval of the Transaction and the common stock underlying the Securities has been registered with the SEC for resale, subject to the satisfaction of customary closing conditions. The Company has agreed to call a special meeting of its shareholders to approve the Transaction and has agreed to register the common stock underlying both the Series D 8% Convertible Preferred and the warrants subsequent to the first closing. The Special Equities Group, a division of Dawson James Securities Inc., acted as the sole placement agent for this transaction.