Workhorse secures $35 million funding
Workhorse Group has secured $35 million in funding from investment management group Marathon Asset Management.
Proceeds from the financing will be used for working capital, part acquisitions and to repay the outstanding amount of a $6.1 million senior loan it secured in July 2018.
The funds have been provided in two tranches. The first $10 million will be used to repay the July notes and $25 million will be used as a revolving credit facility.
Workhorse CEO Steve Burns said: “Marathon is the right strategic partner for Workhorse’s current capital needs, and we plan to leverage their experience, size and resources to further support our growth as a company. This agreement provides meaningful, near-term funding that will go directly toward building and delivering vehicles to customers in 2019.
Workhorse is a electric vehicle manufacturer with its core business being in electric trucks such as the NGEN-1000. But is also developing one of the most exciting eVTOL projects on the market – the SureFly.
The SureFly was the first eVTOL to receive an experimental airworthiness certificate from the FAA. Now, Workhorse is also looking for a partner to help bring the SureFly to a wider market.
Mr Burns continued: “Additionally, we have repaid, in full, our previous debt obligations from July, which will remove all covenants associated with that arrangement, including the obligation to sell our eVTOL aircraft, SureFly. Going forward, our primary goal for both current and future capital initiatives is to leverage the best available financing solutions that will provide liquidity and favourable economics.”
Marathon Asset Management is a New York based investment bank that manages approximately $15 billion in assets.
Duane Hughes, Workhorse President and COO, added: “Completing these financial transactions and developing these strategic relationships are additional key steps in our long-term capital strategy. We plan to implement these measures and other near-term initiatives in the coming months to help drive continued growth in both sales and profitability.”