Company: WKSP
Filing Date: 2025-03-28
Form Type: S-1
Source: 0001641172-25-001309
Chunk: 9

Company: Worksport Ltd
Filing Date: 2025-03-28
Form: S-1
Chunk 9
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”) with an investor (the “Purchaser”), a Cooks Islands limited liability company. Pursuant to the Purchase Agreement, we agreed to issue and sell, in a private placement (“Private Placement”) (i) 95,000 shares of the Company’s common stock, with a par value of $0.0001 per share, to the Purchaser at a $4.00 per share purchase price (“Common Shares”), and (ii) warrants (“Warrants”) to purchase up to 190,000 shares of common stock (“Warrant Shares”), at an exercise price of $4.00 per share. The warrants will be exercisable for a period of five year from the date of issuance.

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September 2024 Loan

On September 4, 2024, we, through our wholly owned
subsidiary, Worksport USA Operations Corporation, a Colorado corporation (the “Borrower”), entered into a credit and security
agreement (the “Agreement”) with Loeb Term Solutions LLC, an Illinois limited liability company (the “Lender”).
Pursuant to the terms of the Agreement, Lender provided the Borrower with a loan of $1,487,200, evidenced by a promissory note, dated
September 4, 2024, by the Borrower for the benefit of Lender (the “Note”). The transaction closed on September 4, 2024 at
which time the Company received net proceeds of $1,437,997.98. The Note stipulates principal interest payments by the Borrower on a weekly
basis at an interest rate equal to the lesser of (i) the prime rate plus 7.00% per annum and (ii) the maximum rate allowed by law. The
Company and Worksport New York Operations Corporation, a Colorado corporation (the “Sub”) have separately each provided a
guaranty in favor of the Lender, guaranteeing all obligations of the Borrower under the Agreement (“Guaranties”). The Company,
Borrower, and Sub have each granted the Lender a security interest in substantially all of its assets, excluding the Company’s real
property located at 2500 North America Drive, Town of West Seneca, Erie County, New York, as collateral security for the obligations under
the Agreement pursuant to security agreements entered with each of them (“Security Agreements”). The Lender holds a first-priority
lien on certain Collateral and a second-priority