Workhorse Group Negotiates $50M Stock Sale to Lincoln Park

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Workhorse Group ($NASDAQ:WKHS) is an American technology company focused on the development of electric vehicles and automation solutions for the commercial transportation industry. The company has become a leading innovator in the electric vehicle space and has built a strong reputation for its cutting-edge approach to clean energy solutions. Recently, Workhorse Group has announced that it has negotiated a deal with Lincoln Park Capital Fund, LLC (LPC) to purchase up to $50 million worth of stock from the company. The infusion of capital from Lincoln Park will enable Workhorse Group to accelerate its development of advanced electric commercial vehicles and fleet management systems.

This includes the production of its next-generation C-Series delivery vans, which are designed to provide superior reliability, safety, and efficiency for companies looking to switch to electric solutions. The deal between Workhorse Group and Lincoln Park marks an important step forward for the company as it looks to meet the growing demand for electric commercial vehicles. With access to this additional capital, Workhorse Group can more quickly move forward with its ambitious plans for the future of sustainable transportation.

Stock Price

On Tuesday, Workhorse Group, Inc., a technology-driven industrial truck manufacturer, announced a $50 million stock sale to Lincoln Park Capital Fund LLC. Following this news, the company’s stock opened at $0.4 and closed at the same price, representing a 5.3% drop from its previous closing price. It was not immediately clear what the proceeds from the sale would be used for. Nevertheless, this transaction may provide the company with additional capital to continue its operations and pursue new opportunities. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Workhorse Group. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Workhorse Group. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Workhorse Group. More…

Key Ratios Snapshot

Some of the financial key ratios for Workhorse Group are shown below. More…

Analysis

After conducting an analysis of WORKHORSE GROUP‘s financials, GoodWhale has concluded that the company has a low health score of 3/10 when it comes to its cashflows and debt. This means that WORKHORSE GROUP is less likely to safely ride out any crisis without the risk of bankruptcy. Further, GoodWhale has classified the company as a ‘cheetah’, which signifies a company with high revenue or earnings growth but lower profitability. Therefore, it is likely that investors looking for strong growth potential may find WORKHORSE GROUP attractive. That being said, WORKHORSE GROUP is strong in assets and growth, medium in profitability, and weak in dividend, so investors should factor these aspects into their decision-making process. More…

Peers

Workhorse Group Inc. is an American manufacturer of electric vehicles, aircraft, drones and other aerospace technology. Founded in 2007, the company is headquartered in Cincinnati, Ohio, and has over 600 employees. Workhorse has three main divisions: Workhorse Custom Chassis, which manufactures commercial truck and van chassis; Workhorse Parts, which sells aftermarket parts and accessories; and Workhorse Technology, which develops electric vehicles, drones and other aerospace technology. Workhorse’s main competitors are Lordstown Motors Corp, Tesla Inc, Electrameccanica Vehicles Corp Ltd.

– Lordstown Motors Corp ($NASDAQ:RIDE)

The company has a market capitalization of 378.52 million as of 2022. The company’s return on equity is -39.42%. The company manufactures electric vehicles.

– Tesla Inc ($NASDAQ:TSLA)

Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. Tesla’s market cap is $709.36B as of 2022 with a ROE of 20.66%. Tesla designs, manufactures, and sells electric vehicles, and energy storage systems. The company operates through three segments: Automotive, Energy Generation and Storage, and Services. The Automotive segment includes the design, development, manufacture, and sale of electric vehicles. The Energy Generation and Storage segment includes the design, manufacture, installation, sale, and lease of stationary energy storage products and solar energy systems, and the sale of electricity generated by its solar energy systems to customers. The Services segment includes the provision of vehicle maintenance and repair services, as well as the sale of used vehicles.

– Electrameccanica Vehicles Corp Ltd ($NASDAQ:SOLO)

Electrameccanica Vehicles Corp Ltd is a Canadian electric vehicle manufacturer. The company’s market cap as of 2022 is 133.15M, and its ROE is -24.99%. The company produces electric vehicles, including cars, motorcycles, and scooters.

Summary

Workhorse Group Inc. recently announced a deal to sell up to $50M worth of stock to Lincoln Park. This move has caused the stock price to immediately drop. While no individual investors were directly affected, this event does have implications for potential investors. Workhorse’s sale to Lincoln Park could be seen as an indication of the company’s confidence in its own future prospects, however it could also reflect a need to raise capital to fund operations. Investors should conduct further research into Workhorse’s business model and financials before investing.

Additionally, they should keep an eye on future events and stock trading trends as they can provide further insight into the company’s position and outlook.