The USPS delivery truck contract is valued at nearly $6 billion, and Workhorse investors were licking their chops at the prospects. In anticipation of the announcement, Workhorse recently soared to a new all-time high of $42.96, but has now dropped by nearly 65% since. The stock has rebounded slightly in after-hours trading, thanks to a report that Ark Invest has started a position in Workhorse at its now discounted price. Shares reacted appropriately and extended that slide on Wednesday as the stock fell a further 8.11% to close the trading session at $15.13. NASDAQ:WKHS investors were devastated on Tuesday as the USPS delivery truck refresh contract that was long thought to be Workhorse Group’s to lose, was awarded to another firm. The stock has now plummeted over 50% since the announcement.Workhorse Group Inc lost out on the much anticipated USPS delivery truck contract to Oshkosh.NASDAQ:WKHS fell a further 8.11% on Wednesday despite the electric vehicle sector rebounding.To bridge the gap until it is ready with new Class 3-6 trucks, Workhorse will finish and sell a version of GreenPower Motor Co.’s medium-duty Class 4 vehicle. He also suspended most production and recalled 41 vans sold to customers. Court of Claims seeking to reverse the mail truck award. Upon taking over last August, new CEO Richard Dauch conducted a monthslong review of the business, dropping a challenge in the U.S. The stock price continued to fall, dropping below $2.50 before rebounding. Production delays of its C-Series electric van, the COVID pandemic and quality issues led to a management shake-up last August. in February 2021, speculators in Workhorse stock ran for the exits, driving the share price 50% lower in two trading sessions. When the Postal Service contract was awarded to Oshkosh Corp. Postal Service contract for next-generation delivery vehicles. It is a far cry from where Workhorse stood as recently as 18 months ago when it was mired in a cycle of living on borrowed money and exchanging debt instruments to get better deals based on a stock price driven by retail investors expecting Workhorse to win a U.S. “With this transaction we are moving forward with a debt-free balance sheet, increased financial flexibility and a stronger financial foundation to continue executing on our manufacturing and product roadmaps.” No longer awash in debt “Over the past year, we’ve taken significant steps to stabilize and strengthen our financial position in order to transition Workhorse from an advanced technology start-up to an efficient manufacturing company,” Bob Ginnan, Workhorse chief financial officer, said in a press release. Workhorse ( NASDAQ: WKHS) shares closed Wednesday at $4.44, down 11.90% in a sectorwide sell-off of electric vehicle stocks. High Trail exchanged $27.5 million in notes for 5,793,888 shares, roughly $4.75 a share. It wipes the last remaining debt from the company’s balance sheet. The Loveland, Ohio-based maker of drone-integrated electric vehicles for last-mile delivery said Wednesday it has agreed to swap senior secured convertible notes held by High Trail Capital that cost 4% interest for about $29.7 million in Workhorse stock.Īccording to a Securities and Exchange Commission filing, the price includes a 7 percentage point premium. Workhorse Group completed a 180-degree turn from debtor to debt-free by paying a premium of common stock to a hedge fund lending source favored by prior management. Editor’s note: Updates with closing stock price.
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