Why Workhorse Group Stock Is Down Today
Shares of Workhorse Group (NASDAQ: WKHS) were trading down on Wednesday, a day after the electric delivery-van maker said it secured $70 million in new financing. Workhorse's shares had closed 20% higher on Tuesday and are still up over 700% since the beginning of April, but they were down about 15.3% as of 10:30 a.m. EDT on Wednesday.
Workhorse said on Tuesday that an unnamed institutional investor has agreed to purchase $70 million in senior secured convertible notes. The new notes are equivalent in seniority to those issued by Workhorse last December, will pay 4.5% annually, and are convertible into common stock at $19 per share.
Workhorse will only build a few hundred of its new C Series electric-delivery vans this year, but it's hoping to ramp-up production substantially in 2021. Image source: Workhorse Group.
Source Fool.com
