Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 613

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 3
Chunk 613
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, a variable rate transaction, without the prior consent of ACM. Further, on June 25, 2024, the Company received the second
notice of default from ACM stating that the Company has incurred indebtedness in the form of $3,600,000 in principal amount of notes in
a transaction involving Aegis Capital Corp. acting as the placement agent, prior to which, the consent of ACM was not obtained. As per
the terms of the ACM note, in the event of any default, all accrued but unpaid interest plus liquidated damages and other amounts thereof,
shall become immediately due and payable in cash. On November 7, 2024, ACM filed a notice of motion for summary judgement in in lieu of
complaint against Zoomcar in New York courts for accelerated payment of $5,997,832.72 due under the ACM note and related legal expenses,
pursuant to breach of the terms of the note. ACM alleged that two “Events of Default” (as defined in the Note) had occurred
thereby entitling ACM to full and accelerated payment of the Note. The first was a Form 8-K, filed by Zoomcar on May 9, 2024, which
allegedly disclosed that on May 6, 2024, Zoomcar had entered into an equity line arrangement and “Variable Rate Transaction”
(as defined in the Note) with White Lion Capital LLC (“White Lion”). The second was a Form 8-K, filed by Zoomcar on June
21, 2024, which allegedly disclosed that on June 18, 2024, Zoomcar had incurred a form of debt that was not “Excluded Debt”
(as defined in the Note) arising from its placement agent agreement with Aegis Capital Corp. without ACM’s prior consent. The
Note generally provides that, upon the occurrence of an Event of Default, all accrued but unpaid interest plus liquidated damages and
other amounts thereof shall become immediately due and payable to the Note holder. On January 14, 2025, Zoomcar filed opposition to the
Motion. In relevant part, Zoomcar challenged the fact allegations concerning: (i) the first Form 8-K by tendering to the Court evidence
confirming that the subject transaction with White Lion in fact had been terminated and the underlying filing of a Form S-1 registration
statement contemplated in that transaction was never effectuated; and (ii) the second Form 8-K by tendering to the