Stock Alert: Workhorse Group Trading 8% Higher

(RTTNews) - Shares of Workhorse Group Inc. (WKHS) are climbing more than 11% Monday morning at $29.95, close to its 52-week high of $30.99.

The company today said it has entered into a note purchase agreement with two institutional lenders to sell $200 million aggregate principal amount of its 4.0% Senior Secured Convertible Notes due 2024.

The proceeds from offering of about $194.5 million are expected to be used to increase production volume, advance new products to market, replace previous higher cost financings, and support current working capital and other general corporate purposes.

In addition, Workhorse has entered into an exchange agreement with the holder of its existing 4.5% convertible notes to exchange $70 million outstanding principal amount of those notes for stocks of the Company. Proceeds from this transactions is expected to be about $270 million.

Workhorse is a technology company focused on providing sustainable and cost-effective drone-integrated electric vehicles to the last-mile delivery sector.