Workhorse Group Inc. (NASDAQ:WKHS) looks to provide drone-integrated electric vehicles to the last-mile delivery sector.
What Happened: On Monday, the company entered into a note purchase agreement worth $200 million, which will allow it to sell 4% of its Senior Secured Convertible Notes due 2024 to two institutional lenders. The money will be used to increase and accelerate production volume, and advance new products to market.
"With this financing in place, we can more quickly advance our production efforts heading into 2021 by increasing our supply chain component volumes, hiring more manufacturing employees and automating certain sub-assembly processes," said Workhorse CEO Duane Hughes.
Why It's Important: This latest funding brings legitimacy to Workhorse's business, and to electric service vehicles as a whole. Amazon.com, Inc. (NASDAQ:AMZN) recently showed its electric delivery van, ordered from Rivian.
Workhorse is currently waiting to hear of a bid for vehicles from USPS for electric delivery vehicles. The company recently signed an intellectual property licensing agreement with EV startup Lordstown Motors.
Workhorse stock traded higher by 4.8% to $28.08 at publication time.